What are the procedures involved if a person is unable to service monthly instalment of hdb housing when:

(1) loan from banks

(2) loan from HDB

Does both categories follow the same exact procedures to liquidate the property, of which the sale proceeds is first paid back (incl interest accrued, admin charges, penalty charges, etc), then refunded back to CPF or in cash (where applicable)?

Uncle bepgof, any comments?

wah pian.

call him uncle.

then you need to call me aunt liao

faint

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base on what I heard on bank loan

is .. bank auction your HDB.

selling price - (the $$ you own the bank + any fees or interests)

balance return to CPF that has been use for this HDB

overflow will return to you in cash

I believe HDB loan also work in this way.

The different between HDB and Bank loan is

HDB, you miss few installment , willn't DEAD. Can neg with HDB for extend installment or special installment. Or HDB can work out plan for you , like downgrading. So the mthly installment will be manageable to you.

Bank, once you miss installment, interest roll in.

few rolls, lawyer letter come in. then sticks came and stick your TV, etc

Uncle bepgof, any comments?

Whether owner is a singapore citizen or SPR, make some difference.

Extract from web:

Under the Housing & Development Act, so long as one of the flat owners of the HDB flats is a Singapore citizen, the HDB flat (of any type) will not vest in the Official Assignee ("OA") in the event of bankruptcy of any or all of the flat owners; ie the flat owners would not be compelled to dispose of their flat.

However, notwithstanding the above, if the purchase of the flat has been financed with a mortgage loan from a bank or the HDB, then the flat may be sold by the bank through a mortgagee sale or compulsory acquired by the HDB in the event the owners default in the mortgage repayment and run up mortgage arrears.

The Official Assignee's consent is not required if a bankrupt wishes to sell his/her HDB flat which does not vest in the Official Assignee. This applies to bankrupt flat owners who belong to Singapore citizen households.

For bankrupt flat owners of Singapore Permanent Resident Households ("SPR households"), it is a requirement that they get the Official Assignee's consent before they can sell their flat. The letter of consent must be obtained from the OA before the owners grant an Option to Purchase to the prospective buyers.

The Housing Development Act(HDB)is powerful enough to ensure & "protect" singapore citizen has a roof even thought he is bankrupt.

Catch the "ball"?.

Edited December 20, 201015 yr by bepgof

To put it plain:

1. Those bankrupt who take HDB loan need not to sell their flat, to pay creditors. So now can borrow money and default payments liao and still got "roof" to cover, provided you are singapore citizen.

2. Those bankrupt on bank loan, need to sell to get poceeds to pay creditors. While in the state of bankrupcy, to sell or to buy a smaller hdb unit to stay, need consent from OA.

Edited December 20, 201015 yr by bepgof

bepgof,

TS didn't ask abt bankruptcy.

He's asking O-tan HDB mthly installment only

Really become "uncle" liao - eye sign poor is one thing, mind don't know think what, paiseh lah, very sensitive to "unable to rapay imstalment"...

No experience on both yet leh. Just ke ke first lor, just wait for 1st red letter and some reminders then pay interest. But utilities must be paid first, otherwise have to watch TV programmes at CC, take shower at public swimming poor and candle light magee noodle at home.

At least can "tong" 6 months, I think.

Edited December 20, 201015 yr by bepgof

errr... why wait for the property to liquidate ? now is a seller mkt. Just try to sell off <10k COV.. i believe there will be takers.. anywhere..

If within MOP, then have to approach HDB to allow you to sell.. Never Never wait for Bank to auction your pty.

there was once, my fren's mom clean forgot to pay the monthly installment (old folks liao, a bit forgetful). Almost a month later, the HDB officer called her, saying things like: we know it must have been difficult for you ah, we understand your situation ah etc... if you can't pay, how about paying say $50 this month first? we can work out financial plan with you etc.... my fren's mom almost LOL on the phone

another fren was retrenched and jobless for ~ a year. when her CPF depleted, HDB called her to "remind" her to put money for installment, offered to work out financial plan etc....

so it seems that HDB is quite forgiving on those who did not pay the installment

but, while some families have genuine financial needs, surely there are pple who abuse HDB's leniency........