Compiled by: Tharmini Kenas tharmini@thestar.com.my
Ask Me Anything is a platform for all readers to ask about all things property. If you have any inquiries, key in your questions http://bit.ly/AskMeAnythingProperty .
This week, Low & Partners managing partner Datuk Andy Low Hann Yong deals with readers’ questions regarding critical issues revolving around property foreclosure.
Q: What happens when a property owner defaults on the monthly installments and foreclosure proceedings are initiated? Does the owner lose the property totally, or gain cash from the sale of the property (minus the bank loan)?
What happens when a property owner defaults on the monthly installments and foreclosure proceedings are initiated?
A: In the event of default, the Bank is entitled to foreclose the property. The Bank will apply to Court for an Order for Sale and then sell it by a public auction.
The sale proceedings will be utilised to settle all the outstanding sums due and owing to the Bank and other expenses such as auctioneer fees, legal fees and etc that may be incurred by Bank in commencing the civil suit and/or foreclosure proceedings.
If there is any surplus, the Bank will refund the same to the owner.
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