Need advice before entering bankruptcy after taking loan compression on property purchase

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asked on May 17, 2023 at 15:08
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Hi, 

I didn't find a topic relevant to my situation, thus I decide to post new.

I'm from Malaysia, my situation now is I'm about to be laid off because company gulung tikar. I also have earlier in 2018 signed for loan compression with 4 different banks for 4 condo in Melaka. Since that time, I have served the progressive interest utilising the cashback received. I have just received the keys for the condos last week. And now I have missed one payment to all 4 banks because of insufficient fund (cashback runs out). I foresee that I probably might go bankrupt in 6 months time (Because from my research, it needs to default for 6 months before someone may declared bankrupt)

My questions:

1) Is it possible to surrender the ownership of the property to each respective banks before foreclosure in return for relief from debt? (Because I read somewhere there is a term called "Deed-in-lieu of Foreclosures")

2) Is it possible to self-declare personal bankruptcy? What are the conditions?

3) What advice would you give me to handle my current situation?

For all the answers I highly appreciate with a big thank you
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5 Answers
answered on May 17, 2023 at 20:17
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edited May 17, 2023 at 21:00
by   jeff005
Deed-in-lieu of Foreclosures

Can you describe the contents which you have read here for discussion?
State the T&C..

(Because from my research, it needs to default for 6 months before someone may declared bankrupt)
Improper research.. redo it with bankruptcy Malaysia in mind

STOP READING OVERSEAS POSTS IN THE INTERNET.. !!

2) Is it possible to self-declare personal bankruptcy? What are the conditions?

Ref here
https://www.lawyerment.com/answers/questions/9908/debtors-petition-self-application-for-bankruptcy

3) What advice would you give me to handle my current situation?
If you can afford to buy 4 condos in 2018, you are still working now, you can afford proper legal services. Just pay for legal services..

Perhaps can you share here how you managed to buy 4 condos in one year, by-passing the vetting systems of the banks as well as BNM. All single names or multiple Joint Names ownership?
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answered on May 17, 2023 at 20:21
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edited May 17, 2023 at 20:30
by   jeff005
signed for loan compression with 4 different banks for 4 condo in Melaka.
Something new to me.. can share what is this?
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answered on May 17, 2023 at 20:30
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edited May 17, 2023 at 20:49
by   jeff005
What Exactly Is Loan Compression (Multiple Submissions)?
Loan compression or multiple loan submissions, is a common property investing strategy preached by almost all property investment gurus. You end up owning (albeit with massive leverage) and buy multiple real estate properties, on paper (since they are still charged to the bank).

Short Personal Analysis and personal comments

It is a legal scam by property investment companies.
All the 4 loans were submitted on the 16th of the month (same day same time).
This is to hoodwink the banks vetting committee when the CCRIS will show that there is no property buying spree.

BNM would consider these types of multiple property investments as illegal and as it does not conform to BNM Guidelines. 

In Singapore Bankruptcy Laws, these are fraudulent acquired loans and is a jailable offense.
All PODs have to be repaid in full. No automatic discharge. No discounts
There is a lifetime blacklist in all Financial Institutions.
(Cheaters will be jailed and punished severely in Spore) but malaisiya bole.. ?? )
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answered on May 18, 2023 at 10:24
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Deed-in-lieu of Foreclosures

Can you describe the contents which you have read here for discussion?
State the T&C..

Please refer to this topic:
https://dictionary.lawyerment.com/topic/deed_in_lieu_of_foreclosure/

Perhaps can you share here how you managed to buy 4 condos in one year, by-passing the vetting systems of the banks as well as BNM. All single names or multiple Joint Names ownership? - All single name.

In Singapore Bankruptcy Laws, these are fraudulent acquired loans and is a jailable offense.
All PODs have to be repaid in full. No automatic discharge. No discounts
There is a lifetime blacklist in all Financial Institutions.
(Cheaters will be jailed and punished severely in Spore) but malaisiya bole.. ?? ) 
- I'm not sure of Malaysian Law on this, thus kindly enlighten me of it if someone know of the law for this.

Thank you jeff005 for your responses
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answered on May 18, 2023 at 13:12
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edited May 18, 2023 at 13:16
by   jeff005
Deed in lieu of foreclosure 

Why talk of this deed when you have already signed a Deed of Assignment to your banks? And it has already been filed in a Court of Law.

Why use USA Laws in Malaysia. What you have read is pertaining USA Laws of Bankruptcy. [complexities of compliance, so many banks and title insurers in New York are not willing to work with deeds in lieu].

Why don't you use USA Chapter 7 and Chapter 13 to protect your "Resident Home"? These 2 chapters are Consumers Protection against any "foreclosure of personal dwelling".

Malaysia Bankruptcy Laws also have "foreclosure" exemption. It is meant for personal family house in the event of bankruptcy status (T&C applies). I had written many times before. Read backwards.

 I'm not sure of Malaysian Law on this
Both Malaysia and Thailand have this laws.
It is under the Criminal Code for scams and cheating.
It depends on the banks as to whether to invoke it or not.
It is very tedious and reflects the banks failure for not vetting properly.
Once the final payments is made and keys handover, this would would be reflected in the current CCRIS. If these are no defaults, one eye closed. When there are defaults in repayments, i can guarantee you someone/ppl is going to pi.ss inside their underwear.
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