Seeking advice on bankruptcy and hdb matters

[decodedlight]

Bro business man if cannot even exceed the income cap for eligibility then go work get salary better.

Hmm...actually I'm one of them. I bought hdb 5rm flat when I got married in my 20s. Then in 30s started 2 businesses but I still kept the hdb flat.

 

[iceblendedchoc]

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

hdb cannot be touch by debters

 

[3G SAINT]

Just ask the OA?

OA is more powerful might help him to resolve problem

 

[goodluckchuck3]

how can a PR earning 1k plus be guarantor to 800k unsecured loan? CSB ah?

 

[harky]

yes run back to her own country le

The shop got open a not? Or run road after take Mooney...

 

[Lss]

That’s huai I asked ts on top
Something BIG must have been pledged to bank if not bank dun 谁谁便便 lend you 800K 1.
if the guarantor really showed proof of ownership of flat and really pledged it as collateral then…different story liao.

That's is not allowed. HDB banned from using as collateral. Iirc there was a small window where it could have happened but clamped down very quickly.

 

[jazz2005]

If the loan (which your mom acted as guarantor) and the mortgage loan for the HDB flat from the same bank? If yes, the bank may lump the two loans together. If they are two separate banks than the it's unlikely the bank that sue your mom for bankruptcy can force you to sell the flat. The most it it do is put a charge on your HDB flat, that is if you sell the flat the bank must give approval, but the bank that gave the mortgage loan is unlikely to approve since it has priority on the HDB flat. In any case, as long as your mom is an undischarged bankrupt than the sell of the flat must first be approved by the OA. Try to get your mom to get the OA to help to arrange a payment plan with bank for some monthly payment and stick to payment plan as after a certain number of years your mom can apply to the OA to be discharged from bankruptcy even if there's a balance on the unpaid amount. This way, when your circumstances change in the future you are free to sell the flat without hindrance. Best to seek legal advice from a lawyer that has experience in such matters.

 

[Lss]

Aiyoh I'm kidding can't u tell

Lucky is joke. Else many ppl die cock stand

 

[jericho75]

Even you are bankruptcy still get can loan from hdb buy hdb flat.

Bank know you declared bankruptcy dnt loan you $1

i think is ppl saying borrow loans from banks buy hdb. if cannot pay hdb is protected from creditors.

 

[Mr BBFA]

tell the bank to go **** spider

 

[harky]

Likely guarantor for him

Maybe his income and cpf not enough for the loan

The house so many ppl stay.. Ask them pay rental...

 

[decodedlight]

This whole post sounds very strange leh. How can someone with only $1K salary can be guarantor for $800K loan ? No bank in the right mind will do that. Even $20K loan also not possible.

TS, you are the one that owe bank money isit and now declare bankrupt and OA in consultation with bank are asking you to consider selling your property to finance your debt ? If you are Sporean, then OA cant touch your property. They can advise you to clear your debt asap, but they cant force you to sell. In any case, the earlier being discharged from bankruptcy the better. Being bankrupt is no joke, practically cant do anything cant travel etc.

 

[DragonFire]

I thought so too. i read hdb website and multiple online forum and they say that hdb is a protected asset but the bank still request for me to either sell the flat in one month or repay the entire loan amount (400+k) in full.

I dont have 400k hence i think my only option is to sell the flat?

This coming from the bank or the OA?
Just ignore them. I don't think there is any legal basis for them to conduct a forced sale as you are not financially embarrassed. You have your rights too as a joint owner of the flat.

There are some issues long term I can see. If your mum is a 50% joint owner, I can see long term problems developing. Let's say you eventually pay up the flat 100%. Essentially your mum owns 50% of that no matter who paid for the flat. That is what the bank is eyeballing.

 

[Acetone]

Something seems off about this story… cos HDB cannot be used as collateral.

If you didn’t default on debt obligations to the bank, they also cannot force sell the property

 

[goodluckchuck3]

This whole post sounds very strange leh. How can someone with only $1K salary can be guarantor for $800K loan ? No bank in the right mind will do that. Even $20K loan also not possible.

TS, you are the one that owe bank money isit and now declare bankrupt and OA in consultation with bank are asking you to consider selling your property to finance your debt ? If you are Sporean, then OA cant touch your property. They can advise you to clear your debt asap, but they cant force you to sell. In any case, the earlier being discharged from bankruptcy the better. Being bankrupt is no joke, practically cant do anything cant travel etc.

yes sound like CSB to me sia, dont say 800k or 20k, no banks will even loan you 5k with 1k salary, assuming without collaterals. obviously TS is saying part of the story nia; and expect EDMW lawyers to perform their magic

 

[jazz2005]

Im thinking if its possible to buy over my mother share of the flat and avoid this bankruptcy trouble but i would have to refinance it under my own name.

the bank letter has 2 options. Either i repay the 400k amount in full or sell the flat within 1 month

First, you need to determine if the letter from the bank giving you one month to sell is a court order. The bank can't simply write a letter to force you to sell the property. When your mom was made a bankrupt the OA would have written to her to attend a meeting to inform her what she can't do as a bankrupt etc. You should have taken the matter seriously and assist your mom as you are affected too.

Never act as a guarantor for anyone! The consequences are too great.

 

[Mr.Kopi]

1. die die don't sell first. Bank most likely trying their luck. Just like how everytime you request for fee waiver, they say no. You push again then they waive
2. go and seek legal advice.. seek within your circle of friends and if not, go online and look for one
3. push to remove your mom name on the title deed as soon as possible

 

[iantao99]

No. its her good friend that wanted to start a restaurant business. i just wonder how the bank allowed my mom to be a guarantor when her income is only 1+k and she does not have any asset at all

Could it be that the bank allows because they know your mum owns a HDB flat that can be liquidated in the event of the loan default?

 

[Lss]

Hmm...actually I'm one of them. I bought hdb 5rm flat when I got married in my 20s. Then in 30s started 2 businesses but I still kept the hdb flat.

You are still repaying HDB loan? Why never redeem? Paiseh offtrack abit.

 

[jazz2005]

Something seems off about this story… cos HDB cannot be used as collateral.

If you didn’t default on debt obligations to the bank, they also cannot force sell the property

There's a difference between a mortgage loan from HDB directly and a bank.