Advertisement

What can the bank do if I do not make repayments on my home loan?

If you fail to make three (3) consecutive payments, the financial institution will take the necessary actions to recall the loan.

In the worst case scenario, the financial institution will foreclose 1 the property and sell it to settle the loan.

The borrower would still be liable to pay the difference between the auction price and the loan amount outstanding.

Back to Housing Loan's Contents


References
  1. Foreclosure - Legal action available to the financial institution for recovering outstanding sums owed by a borrower who has defaulted on his/her loan. The property pledged by the borrower to secure the loan is sold and the proceeds of the sale used to settle the outstanding loan amount.


Reprinted with permission from BankingInfo (A Consumer Education Programme by Bank Negara Malaysia)


Back to the top



Sponsored Links

Share this page

Notes
Knowledge Base ID :   1292
Last Reviewed :   May 22, 2014
Source :   BankingInfo
Tags :  

Related Knowledge Base Issues