Recently, a legendary Call Loan case has been reported on the Internet.
The incident occurred when a self-proclaimed owner of Novoland in Tuen Mun purchased a unit for NT$6.5 million and paid 20% of the down payment of NT$1.3 million. Together with legal fees, miscellaneous fees and mortgage insurance expenses of NT$560,000, the total amount was NT$1.86 million. Money can be lost at any time! Because the bank suddenly asked him to terminate the mortgage and required him to repay the loan within 30 days, it also suggested that he find a buyer to take over the goods on his own, because the effect would be better than if the bank repossessed the property and turned it into a banker.
Netizens said that they handed over the property at the beginning of July, and at the end of August received a letter from the bank stating that the mortgage was terminated. However, netizens claim to have repaid their loans on time. Why does this happen? Later, he added that when he first went to the meeting, because he only just passed the over-stress test, the bank asked him to add a guarantor after the interest rate increase, but he could not find a friend to be a guarantor, so the bank called him for a loan. He also said that his credit record was not good at the time, and only one bank was willing to underwrite the mortgage.
The bank emphasized that it is a special case in recent years
As for the reason why the bank terminated his mortgage, it was purely a "high-level decision." Later, the bank confirmed the case, but emphasized that under normal circumstances, it would never do this. This case is a very special and rare example and has nothing to do with the economic and market conditions. It can be regarded as a shot in the arm for other property owners in Hong Kong. It is difficult to comment on his situation as details of the case are not available. Generally speaking, the most common situations where a bank will call you a loan are the following six points:
- Property with no payment: The applicant has stopped paying for the property for a period of time, for example, no payment has been made for several months;
- Negative equity: The property depreciates significantly, resulting in serious negative equity;
- Illegal rental: The owner took out a high-yield mortgage to buy a property, and then rented the unit illegally. After being exposed, the bank called him for a loan;
- Involved in money laundering or "coin speculation": the account was involved in suspected money laundering transactions or cryptocurrency investments, and the account was terminated by the bank;
- Involving other illegal activities: For example, the applicant was exposed for falsely reporting income or providing false documents;
- Second mortgage through finance company.
TU records have little impact
Are the cases of netizens really not related to the above six reasons? I don’t know, but TU’s record is poor and Call Loan itself is quite contradictory. Because if the TU record was really that bad, it stands to reason that the bank would not have approved the mortgage in the first place. As for stress testing, the bank theoretically gave full consideration before approving the mortgage, but then regretted it in less than three months. This is indeed extremely rare. Since call loans are high-cost and low-efficiency for banks; and after becoming the bank owner, they usually need to be sold at a discount, which is by no means cost-effective for banks. Therefore, as long as homeowners make their payments on time, banks will not do this. If the owner is really worried that he will be the subject of a call loan, on the other hand, as long as the above six common reasons for being called for a loan are not met, there is basically no need to worry too much.
Recently, a legendary Call Loan case has been reported on the Internet. A self-proclaimed owner of Novoland in Tuen Mun said that he purchased a unit for NT$6.5 million and paid 20% of the down payment of NT$1.3 million, together with legal fees, miscellaneous expenses and mortgage. Insurance expenses were 560,000 yuan, totaling 1.86 million yuan. This money was lost at any time! Because the bank suddenly asked him to terminate the mortgage and required him to repay the loan within 30 days, it also suggested that he find a buyer to take over the goods on his own, because the effect would be better than if the bank repossessed the property and turned it into a banker.
Netizens said that they handed over the property at the beginning of July, and at the end of August received a letter from the bank stating that the mortgage was terminated. However, netizens claim to have repaid their loans on time. Why does this happen? Later, he added that when he first went to the meeting, because he only just passed the over-stress test, the bank asked him to add a guarantor after the interest rate increase, but he could not find a friend to be a guarantor, so the bank called him for a loan. He also said that his credit record was not good at the time, and only one bank was willing to underwrite the mortgage.
The bank emphasized that it is a special case in recent years
As for the reason why the bank terminated his mortgage, it was purely a "high-level decision." Later, the bank confirmed the case, but emphasized that under normal circumstances, it would never do this. This case is a very special and rare example and has nothing to do with the economic and market conditions. It can be regarded as a shot in the arm for other property owners in Hong Kong. It is difficult to comment on his situation as details of the case are not available. Generally speaking, the most common situations in which a bank will call a loan are the following six points: (1) Property with no payment: The applicant has stopped paying for a period of time, such as no payment for several months; (2) Negative equity: The property has depreciated significantly. , resulting in serious negative equity; (3) Illegal renting: the owner took out a high-yield mortgage to buy a property, and then rented the unit illegally, and was called for a loan by the bank after being exposed; (4) Involved in money laundering or "currency speculation": The account was involved in suspected money laundering transactions or cryptocurrency investments, and the account was terminated by the bank; (5) Involved in other illegal activities: for example, the applicant was exposed for falsely reporting income and providing false documents; (6) Second mortgage through a financial company.
TU records have little impact
Are the cases of netizens really not related to the above six reasons? I don’t know, but TU’s record is poor and Call Loan itself is quite contradictory. Because if the TU record was really that bad, it stands to reason that the bank would not have approved the mortgage in the first place. As for stress testing, the bank theoretically gave full consideration before approving the mortgage, but then regretted it in less than three months. This is indeed extremely rare. Since call loans are high-cost and low-efficiency for banks; and after becoming the bank owner, they usually need to be sold at a discount, which is by no means cost-effective for banks. Therefore, as long as homeowners make their payments on time, banks will not do this. If the owner is really worried that he will be the subject of a call loan, on the other hand, as long as the above six common reasons for being called for a loan are not met, there is basically no need to worry too much.