At present, many people choose to take out a loan to buy a home, but if they are unable to pay the mortgage or the house has become a rotten property, they may choose to refuse to repay. This behavior is known as "power outage", and the impact of the supply cutoff on lenders is extremely serious. Once they stop paying the loan, the bank still holds them accountable, i.e. auctioning off the homes they buy. If the loan amount is one million and the house is only auctioned for half a million, then half a million is still payable to the bank. If the loan is not repaid, the bank will continue to pursue other property, leaving the lender a permanent reliance.
Can the state introduce a policy that when banks grant loans, they must ensure that the houses purchased are delivered on time? If delivery is not possible on time, the bank shall be liable. Therefore, for loans that have been previously paid or repaid, the bank will return these amounts, and the unfinished house will go to the bank. In this way, the homebuyer will no longer bear any burden.
After all, the bank makes the loan because the developer gives the bank a guarantee that the house will be delivered on time. If followed my advice, the homebuyer will not take any risk. For example, if they take out a loan of 1 million and have repaid 100,000, but the house becomes a bad building, the bank will return the 100,000 repaid, and the unfinished house will belong to the bank. This means that lenders no longer have to repay a million loans.
If banks take on this risk, they will be more cautious about lending to the outside world. They need to ensure that the developer has sufficient collateral and that the home will be delivered on time before the loan is issued. The benefits of this are obvious.
