Malaysia Housing Loan Default

[wolverine23]

Just wondering, what happens if a Singaporean defaults on a Malaysian housing loan? Will the Bank chase for it even in Singapore?

 

[butoh6050]

They don't need to chase anybody.
they sent you the overdue statements and one fine day, your home is put up as foreclosure.
All your barang barang is sold as is.

 

[Funniman]

They don't need to chase anybody.
they sent you the overdue statements and one fine day, your home is put up as foreclosure.
All your barang barang is sold as is.

Not only your home is sold. You have to pay the difference between the proceeds of the house sale and the loan amount. The loan agreement is between yourself personally and the bank. The property is just used as a collateral. If you cannot pay up, then you be sued as a bankrupt. When that happen, big problems. You cannot travel, no credit cards, no loans whatsoever. It take years before you can clear your name.

 

[Newbie11]

Singaporean can travel to Malaysia la

 

[Funniman]

Singaporean can travel to Malaysia la

Immigration blacklist...Got passport but no clearance to travel.

 

[Newbie11]

Hmmm not based on what I heard

 

[wolverine23]

This I know. But do the banking laws apply cross-border?

Example: you default in Malaysia but never go back there. So, the defaulter can still led a normal life in Singapore right???

Not only your home is sold. You have to pay the difference between the proceeds of the house sale and the loan amount. The loan agreement is between yourself personally and the bank. The property is just used as a collateral. If you cannot pay up, then you be sued as a bankrupt. When that happen, big problems. You cannot travel, no credit cards, no loans whatsoever. It take years before you can clear your name.

 

[wolverine23]

You can default in Malaysia but still not be a bankrupt in Singapore right?

This I know. But do the banking laws apply cross-border?

Example: you default in Malaysia but never go back there. So, the defaulter can still led a normal life in Singapore right???