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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 10, 2017 at 16:28
by   jeff005
Thks for the offer. I will take it after puasa is over. Am 2,000 km away in the Golden Triangle areas. Have to celebrate Raya with my ex wife who has converted.

If @Ayzek and @vvkpc is interested we can TT In USJ2? Forget @notalawyer.. he/she is just a robot answer machine.. drinks lubricating oil only..
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answered on Jun 10, 2017 at 18:40
by   iman62
Letter from the bank's lawyer to JIM

So what can I do to stop/delay the issuance of the order? 
In the prev hearing, the magistrate asked the lawyer to confirm whether the money that I paid to insolvency is sufficient to cover the payment for the property to be auctioned. The attached letter confirmed it.

1. The money is already with JIM (RM320K), so why the bank need to auction the property.
2. JIM will not release it until I pay in full JIM Fees
3. I need time to raise the RM14.2K
4. The amount that I need to pay is only 1.42% from the value of the property.

Don't you think to auction a property worth RM1mil to recover RM14.2K is unfair? Any legal options that I can use during the hearing?

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answered on Jun 10, 2017 at 21:52
by   vkpc
Assuming the property will not be sold in the first auction, you still have many months to raise the balance amount, so why worry so much?
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answered on Jun 11, 2017 at 14:58
by   Nora
Have you vacant the house?
You are still living inside it with your family?
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answered on Jun 11, 2017 at 15:54
by   Debtssolusi
Why worry over a house that is no longer yours? You should be wary of the amount of cash you would be getting back from the auction. And.. have all the offer letters from ALL Other Creditors filed into your estat?
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answered on Jun 12, 2017 at 00:02
by   iman62
Assuming the property will not be sold in the first auction, you still have many months to raise the balance amount, so why worry so much?

If the court set the auction date (normally within 30 days) and if there are bidders, then I have to find a new place to stay. I wont be getting the money so soon. Have to get myself discharged and might take long time. My plan is to buy time, pay the RM14.2K to JIM, get myself discharged and then I can sell the property at market price.
 
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answered on Jun 12, 2017 at 00:03
by   iman62
Have you vacant the house? 
You are still living inside it with your family?


Yes, still staying at the house
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answered on Jun 12, 2017 at 00:37
by   iman62
Why worry over a house that is no longer yours? You should be wary of the amount of cash you would be getting back from the auction. And.. have all the offer letters from ALL Other Creditors filed into your estat?

Why is it no longer my house?

Paid to JIM                                                                        RM 320K
Owing to CIMB for the housing loan and personal loan    RM 259K
Owing to other creditors (LHDN and RHB)                       RM   44K
Balance                                                                              RM   17K

JIM Fee                                                                               RM   31.2K
Balance to pay JIM                                                            RM   14.2K
 
So whatever I owed to the creditors already paid to JIM. 
The only problem now is the shortfall that I need to pay JIM, otherwise they will not release the money to the creditors.

I already nego with the creditors many times to reduce the amount by another RM14.2K but not successful.

If I were to let the court auction the house, then
1. The will be other charges (auction fee etc)
2. The money will go to JIM
3. I have to move out and get another place.
4. JIM will release the money to creditors. 
5. The balance from the auction, (abt RM980K) will be kept at JIM
6. I have to file for discharge
6. Once discharged, then only I can get the money. It will take months.

So this will not be a good option.
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answered on Jun 12, 2017 at 02:22
by   vkpc
If the court set the auction date (normally within 30 days) and if there are bidders, then I have to find a new place to stay.

Wrong.
Court order is to approve the sale by auction.
Court did not order anybody to vacate the house.
Even after the house is sold, you can still continue to stay on until another Court Orders asks you to vacate the house.  If you contest this, you can stay on for years.

If any prospective buyer comes to view the house, you can tell them that you will not vacate unless there is a Court Order to vacate.  This may buy you some time as the auction may find no buyer.
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answered on Jun 12, 2017 at 03:42
by   iman62
TQ @vkpc

The problem is I do not want them to auction the house. 
The market for a double storey semi-D around this area is about RM1.5mil. (freehold, 6km from City Center)
So if they auction for RM1mil, chances are they will be buyer. 
Even now already get inquiry from property agent (to buy direct, not auction)

I'm arranging the RM14.2K to pay JIM but I just need a bit more time (about 1-2 months)
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