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Bank wants to auction property despite the amount already paid to JIM.

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asked on Jun 9, 2017 at 17:28
by   iman62
Hi

I was made a bankrupt in 2002 (Personal loan).  At the same time I defaulted on my housing loan and the bank tried to auction the property several times but not successful (no bidder).
The bank also submitted the PoD on the housing loan to JIM. The last time they tried to auction the property, I negotiated with the bank to stop the auction and made payment to JIM on the agreed amount.

However after several years, JIM did not release the payment to the bank since the amount is not sufficient to pay my other creditors and JIM fees. After several negotiations, all the creditors agreed to give discount on the PoD amount.  (The total amount is less than the amount I paid to JIM).
However, JIM still did not release the amount since after adding their fees (about RM38K), the amount is still not sufficient.

According to JIM, I still need to pay another RM15K before they can release the amount to the creditors. The problem is after paying the full amount for the housing loan, my business has folded and I’m having problem to raise the RM15K

Now the bank is trying to auction my property again.  

Question

They want to auction the property for RM1 million because I cannot pay RM15K to JIM.  What can I do to stop the auction?  I have tried to negotiate with the creditors but not successful. I need time to raise the RM15K.

I was told by a friend that since I already made the full payment to JIM for the property, the bank cannot auction the property. The money is already there with JIM.  JIM’s lawyer is not helpful at all and said that they cannot do anything since the bank is just following the book.

Thank you.
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answered on Jun 9, 2017 at 18:30
by   vkpc
What can I do to stop the auction?
Borrow RM 15k from friends or relatives.
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answered on Jun 10, 2017 at 02:46
by   iman62
TQ vkpc.

It will take time to raise the RM15K. The hearing to set the auction date is next tuesday. 

Any suggestions?

btw, really inspired reading about how @ayzek won the battle with the bank.
I have been fighting the battle since 2002 so I know how it felt like. 

@ayzek @vkpc @jeff05 @notalawyer
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answered on Jun 10, 2017 at 03:20
by   kiki
At the same time I defaulted on my housing loan and the bank tried to auction the property several times but not successful (no bidder).
Now the bank is trying to auction my property again. 

What makes you think that they will be successful this time..?

They want to auction the property for RM1 million because I cannot pay RM15K to JIM. 
Did you ask the bank or JIM if the auction of RM1 million is successful where will the excess money after the deduction of RM15K + auction fees go..? will they return it to you..?
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answered on Jun 10, 2017 at 03:49
by   iman62
What makes you think that they will be successful this time..? 
The last time when they auctioned the property, there were many prospects. (got to know about it from Real Estates agents, some already prepared the bank draft). Managed to get the auction stopped 2 days before the date, after I made the full payment. 

Did you ask the bank or JIM if the auction of RM1 million is successful where will the excess money after the deduction of RM15K + auction fees go..? will they return it to you..?
According to the JIM officer, the money will be paid to JIM and I will get the money after apply for discharged. I heard it will take months before I can get the money.
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answered on Jun 10, 2017 at 03:51
by   jeff005
edited Jun 10, 2017 at 03:55
by   jeff005
@ imam62

Hi Hi to another old bird/silent reader. 
For u to refer to ,@Ayzek, you have been folowing for a long long time. 2002 bankrupted, PL, is it Citi?

I do not quite understand about yr case on

1. You hv dealt with JIM, and paid some moneys, why didn't u apply for bkcy discharge after 5 years?

2. The bank hv filed POD. Technically, the house is gone. Any moneys paid by you is into your estate, is managed by JIM and shared pro rated to all creditors. There can be no individual negotiations with just a single creditor, hence no payment is made to the bank solely.
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answered on Jun 10, 2017 at 04:04
by   jeff005
edited Jun 10, 2017 at 04:11
by   jeff005
3. The bank hv filed POD, say 300k at point of bankruptcy, if yr house is sold at 1M, the balance of 700k minus other misc will hv to transferred into yr estate and after deduction payments as discounted by the other creditors, wow.. u can make a comeback into business line since ur only 55 and can withdraw fully yr EPF.

Hakuna Matata :p

Well.. fyi..  @Ayzek hv spoken in between my tis postings.
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answered on Jun 10, 2017 at 05:03
by   iman62
edited Jun 10, 2017 at 05:32
by   iman62
Hi Jeff

1. You hv dealt with JIM, and paid some moneys, why didn't u apply for bkcy discharge after 5 years? 
2002 - declared bankrupt (RM50K)
Bank tried to auction the house
2008 - nego with JIM to settle. I think someone leaked the info and the bank entered PoD for the property at RM350K. So I did not proceed.
2011 - bank auctioned the property again n managed to reduce the amt to RM320. I paid the amount to JIM and auction stopped.
Found out that the same bank already file for another bankrupcy for Business Loan (RM500K).
My original plan was to clear my name (using money from my business) and then charge the property to replace the working capital. With the new case, plan got derailled and so my business suffered.

On the second bankruptcy case, earlier went to court and after informed the judge that I was already bankrupt and the case was already more than 6 years, the judge really taruk the lawyer and he dropped the case. I thought that was the end of it. But somehow they file again without my knowledge (No notice sent to me) and got the 2nd bankruptcy. So the last few years I spent to set aside the 2nd case and managed to get discharged last year. Once that done, only then I start nego with all the creditors to divide the RM320 paid earlier to JIM. Final figure, I still need to pay RM15K.
For some reason, the bank still pursue to auction the property and JIM said they cannot do anything to stop the bank, since it is their right.

I think the bank really out to get me because they lost the case on the business loan.
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answered on Jun 10, 2017 at 08:46
by   vkpc
Are you using a lawyer to fight the bank?
Which bank is it?
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answered on Jun 10, 2017 at 12:13
by   jeff005
@iman62

Personal Opinions only

1. Once JIM accepted the POD, the house is gone. There is no way you can stop this auction even if u pay up the 15k.

2. Personally I believe that the second bkcy application is sudah lebih. This happened when the S.O.A. was not properly filled up at reporting to JIM when first bankrupted which causes this mess.. That is why I keep telling bankrupts to fill up the SOA accurately even amounts owing to ex wife or mother in law for any dowry owed. Things can come back to haunt bankrupts down the hill.

3. The 500k BL.. is it CGC linked loan?
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answered on Jun 10, 2017 at 12:26
by   jeff005
4. What you MUST do now is to study the auction process and monitor it seriously to ensure it has been conducted properly and the proceeds be eventually credited into your estate with JIM. It is your legal monies. You r so anxious about this house, are you still sleeping inside it?

5. You and I have spend so much time and moneys trying to correct our financial mess. My personal advice is,
MOVE ON WITH LIFE. There is always new life after bkcy..I am enjoying my new life...
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