Malaysia Real Estate

woonlm492 · Joined: 05 Feb 2006 Posts: 148

Hi again,

I have a Bank Loan with a bank and the property the bank financed has been stalled. I had the cash to pay-up the full amount of the loan, and thus, do NOT owe the bank anymore money.

Now, the bank is just sitting there waiting to disburse the remaining 20% of the loan.

I have enough funds to finance the rest of the staged payments to the developer should the project be revived - meaning I can pay-up with my own cash.

Should I terminate the Loan Package that I am still holding with the bank ?

What are the pros and the cons please ? Thank you.

woonlm492 · Joined: 05 Feb 2006 Posts: 148

Dear forummers,

Hoping for some kind advice please,...... Thank you.

Banzai · Joined: 25 Oct 2004 Posts: 3368

personally, to me.. it makes no diff whether you pay it off or not.. you lose either way.. for me, i will pay and discharge the loan and put the episode behind me..

woonlm492 · Joined: 05 Feb 2006 Posts: 148

Banzai,

Thank you for your kind advice.

Well, I am certainly hoping for the project to be revived. This is a project by T, I think you know who I am talking about.

T has been putting forward many plans and press briefings.

If I discharged the loan and take back the property, I will have to deal with the 'incoming party' or T again personally when the project is revived, and NO BANK behind me.

This is the reason for my post here : Should I go it alone after this please ?

Thanks again,..........

winnie the pooh · Joined: 24 Jan 2006 Posts: 1999

what's your alternate investment plan for that extra cash you have? if it will generate an income greater than your bank interest/instalment... i say let your loan be. as least now you still have that to invest with to minimise your losses. if you dump it all in... not only will you not have your property, but you won't have your money either! just my dua sen...

woonlm492 · Joined: 05 Feb 2006 Posts: 148

Winnie,

A very good morning to you ! And I love your humourous posts and good advice in this forum.

Thank you for your advice for myself.

Based on your advice, I see that you are more inclined towards the financial side. Then I would agree : I should not dump-in, but I should try to minimise my losses.

But is the financial side the only factor please ? What about the legal leverage of working out this transaction please ?

Thank you.

mainsna · Joined: 20 Apr 2006 Posts: 33

Dear Woonlm492,

This is my 2 cents' comment.

For abandoned housing projects, most of the times, the purchasers are the victims and the developer on the other hand has their own sweet time to complete or just close office.

From the legal perspective, as a purchaser, you cannot take legal action against the developer on the basis of delay in completion in court of laws or tribunal of house buyers under KPKT.

However, when a purchaser defaulted his instalment payment and when the bank take legal action to recover the defaulted loan (NPL), then, there are a few options for the purchaser. The Purchaser can set aside the SNP n plead frustration of contract since the project is at the state of abandonement and the possibility of revival is zero or maybe few percent.

So, when the Purchaser terminate the SNP, then the Bank is left with the option to recover any amount earlier disbursed to the Developer. So. the Purchaser will pay that particular amount. Then, all will settle and end....just like that...yeah right..

Just a practical illustration for you to ponder... Rolling Eyes

Regards,

Mainsna

hwong · Joined: 13 Jun 2006 Posts: 23