Seeking advice on bankruptcy and hdb matters

[ceestudent]

How do you finance your flat? with CPF OA?
When you sell the flat, the OA money+accrued interest will auto go back to your respective cpf account. Unless you finance your flat with cash.

 

[3G SAINT]

Hi all,

I would like to seek some advice regarding bankruptcy and hdb matters.

Background - Im currently staying in a hdb flat which is owned by me (SC) and my mother (PR) but recently my mom was declared bankrupt as she was a guarantor for a loan which was defaulted by her friend.

Due to her bankruptcy - i received a letter from the bank requesting for us to sell our hdb flat within one month.
Would like to seek fellow forumer advice :

1) Can the bank force me to sell our hdb flat? ( till date - i have been paying 80% of the monthly installment and downpayment for our current flat whereas my mom paid about 20%) Fyi, i still have enough cpf to service the monthly installment for the next 2 years (outstanding loan 400+k)

2) Can this flat be sold in the resale market? My flat have not reach MOP (left about 1.5 years till MOP).

3) Assuming if the flat is sold in the resale market. Does it mean that 50% of the sales proceed will be used to clear her debt? (this flat is under joint tenancy)

4) Can i buy over her share and refinanced it to make myself the sole owner of this hdb flat? (im turning 35 in a few months)

Sorry for my bad english and multiple questions as im pretty confused right now and would like to seek some advice

You should ask your OA write letter to bank to retain the flat

Talk to your OA ask them help you
Seek advice from them
Bank got right dnt finance your house.HDB can get loan even you are bankruptcy

Bank will not loan you $$$ once you are bankruptcy

Actually if your mum also put as owner you should remove put her as occupier before declared bankruptcy so the house will not force you sell flat

https://singaporelegaladvice.com/law-articles/bankrupts-hdb-seized-faqs/

Can a Bankrupt’s HDB Flat be Seized and Sold to Repay Creditors?​

As long as at least 1 owner of a Housing and Development Board (HDB) flat is a Singapore Citizen, the flat is protected from creditors by law and cannot be sold or taken over by the Official Assignee (OA).

The OA manages the affairs and estates of bankrupts, and has a duty to raise money or make advances for the purposes of the estate in order to fund repayments to creditors, among others.

However, if all the owners of your HDB flat are not Singaporean Citizens, you will need to surrender your flat to the OA. The OA has the right to forcefully seize possession of your HDB flat should you refuse to cooperate.

 

[ceestudent]

TS, your mom needs to come clean at this critical juncture. Check if the HDB was used as collateral when you mom act as guarantor.

HDB cannot be used as collateral. Only private property can be used as collateral. This is confirm.

 

[weiess]

think hdb is count as protected asset, so they can't force u to sell right?
any expert can't confirm this?

 

[2_sillies_trap]

TS, your mom needs to come clean at this critical juncture. Check if the HDB was used as collateral when you mom act as guarantor.

hdb can use as collateral?! huat leow lar...

 

[Happyman8]

How do you finance your flat? with CPF OA?
When you sell the flat, the OA+accrued interest will go back to your respective cpf account. Unless you finance your flat with cash.

Fully OA. I did downpay about 50k in cash thou. Understand that oa + accrued interest will go back to our respective account. How about the sales proceed (cash profit)? will it be used to settle my mom debt?

 

[Darkshadows]

Yes that is what it is said. My friends are all surprised too because they thought hdb cant be touched lol

Thought the best would be to approach HDB on this. Think they are in a better position to help?

 

[ouroboroso]

Best to seek proper legal advice. Or at least check with HDB in person.

If I remember correctly, there were changes made to the Bankruptcy Act in relation to the OA having access to a bankrupt's HDB flat due to commercial banks coming as lenders for HDB flat purchases.

Banks will always issue legal demands to maximise their chances of debt recovery. Often this is done through the use of intimidating language.

The onus is on you to obtain relevant legal advice.

Do take note of the deadlines given by the banks though so that you don't run afoul of them and end up with unnecessary legal suits. Seek legal or HDB counsel as soon as you can.

Document all official advice given to you so that you have supporting documentary evidence.

 

[Happyman8]

hdb can use as collateral?! huat leow lar...

She dont dare to come home right now because she knew the trouble she caused

 

[Scp173]

Tell the bank a bankrupt person only follow order from the OA and nobody else

Tell them to F off
Ask them make the OA give the order if they can den ur mum will follow the order and sell the flat

 

[drkcynic]

Better go HDB and ask directly.

 

[ceestudent]

Fully OA. I did downpay about 50k in cash thou. Understand that oa + accrued interest will go back to our respective account. How about the sales proceed (cash profit)? will it be used to settle my mom debt?

The cash proceed will be decided by you and your mom.. If the money go to your joint account then the bank will be able to take it, same like your current joint account.

Btw, mind if we ask. Is your mom a victim of love scam?

 

[Muscleman9968]

Your mother is bankrupt the creditors cannot go after her and her affairs are handled through the official assignee.

As for the Hdb just throw the letter from the bank into the dustbin.

You mentioned bankrupt due to guarantor not due to cannot service housing loan.
Don’t be confused.

 

[congster2]

yes its the same bank. im not sure regarding the collateral pledge as my mom doesnt want to tell me the full information. fyi, my mother salary is only 1k+ every month so im not sure why they bank allow an old women who earn 1k+ to be a guarantor

Well if she put up her stake in the hdb flat as a collateral then they could lend her. And that would make sense. Otherwise she probably won't qualify as a guarantor as you said.

 

[Happyman8]

Im trying to attached the letter to censor the name but it seems like im unable to attached the image

 

[Tcs Tango]

You better check whether the loan which your mother is a guarantor for is with an accredited bank or a moneylender.Under Singapore law,(the last I read),if one of the names on a HDB deed is a Singaporean,the lender who lent you money cannot seize your HDB flat,meaning,your HDB flat is an asset protected under Singapore law.However,there will be people who try certain ways to make you pay up(such as spraying paint etc)which is illegal under Singapore law.

 

[3G SAINT]

Tell the bank a bankrupt person only follow order from the OA and nobody else

Tell them to F off
Ask them make the OA give the order if they can den ur mum will follow the order and sell the flat

Bank is the saint they got right dnt loan you $$$ finance your house

 

[ouroboroso]

Im trying to attached the letter to censor the name but it seems like im unable to attached the image

Can use https://imgur.com

 

[Muscleman9968]

How come Hdb used as collateral. Sounds like a cock and bull story.

 

[ceestudent]

Well if she put up her stake in the hdb flat as a collateral then they could lend her. And that would make sense. Otherwise she probably won't qualify as a guarantor as you said.

HDB cannot be used as collateral bro.