Asked by Anonymous
say if we buy a unit at $1 mil and apply for 70% finance, if the valuation of our property drop below a certain limit due to economic crisis, does my bank reserve the right to ask us to cough up the difference?
Some of my older colleagues told me in 1997/1998, got a few people took very loan of 90% for private condo and when the market tanked in 1998, the banks start calling them to top up the difference between loan amount and valuation if they still want to continue serving the loan and even if they are not selling the property.
Some of my older colleagues told me in 1997/1998, got a few people took very loan of 90% for private condo and when the market tanked in 1998, the banks start calling them to top up the difference between loan amount and valuation if they still want to continue serving the loan and even if they are not selling the property.
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