How serious are the consequences of abandoning the house and cutting off the supply? A real case for you to see.
Can you believe it? As of September 2023, more than 200,000 people have been sued by the four major industries, and there is a heart-wrenching story behind each figure. Today, I will use my fellow villagers as an example to tell the tragic consequences of the off-plan supply.
In 2021, my fellow villagers purchased a 129-square-meter three-bedroom apartment in Yubei Central Park with a total price of $2.73 million, a down payment of $820,000, a loan of $1.91 million, and a monthly repayment of $17,600.
When he was about to sell his house this year, he was surprised to find that the house worth 2.73 million yuan was now worth only more than 1.7 million yuan. He has repaid more than 310,000 loans, but the principal is still 1.83 million yuan. If he sells the house now, not only will he lose the down payment of 820,000 yuan, but the bank loan will not be able to pay off. Therefore, he chose to abandon the house and cut off the supply. On the first day of the cut-off, he said, he felt very relieved because he finally didn't have to pay rent anymore.
But two days later, he received a text message: Sir, you are overdue, a month overdue. Sir, you are already overdue for a month, another month overdue. You are two months overdue and will no longer receive text messages after three months.
At this point, the bank called him: Sir, can you pay off the loan? Three months later, the seventh month, the bank never called again.
At this time, you will receive a court summons asking you when to appear in court. Typically, a fast-track trial takes about two months, and the verdict will be issued after the verdict. You don't have to think about it, you will definitely lose this case. At this point, the bank will apply for the seizure of your house. After three months, the house will be auctioned online.
If the market price is 1.7 million, the house is expected to be auctioned at around 1.2 million. However, you cannot get this 1.2 million yuan, and you have to repay the bank more than 900,000 yuan.
Why is that? During the period of interruption, you need to bear the bank's penalty interest, legal fees, execution fees, appraisal fees, auction fees and other expenses. After the auction, you can only get around one million.
In the end, his down payment of 820,000 yuan was gone, and he still owed the bank more than 900,000 yuan. What about this arrears? The court will continue to enforce you, listing you as a dishonest executor and needing the rest of your life to earn money to pay back. Until it is paid off. In addition, your credit history will also be recorded and you will no longer be able to apply for a loan to purchase a home in the future. This is a very tragic story: the house leaked overnight rain, the boat broke and the wind was overhead. Hopefully, this doesn't happen to anyone.
When buying a home, be sure to do what you can and don't push yourself to the edge of a cliff. Even if you encounter great difficulties, you need to find better solutions. As a last resort, don't cut off the supply.
Finally, I would like to say that the days when house prices only went up and down or house prices skyrocketed are over. If you're planning to buy a home with a mortgage, be sure to consider your financial means before getting in the car.
