895 HDB Flats Repo Since 2003
-
i just don't understand how our govt still has the conscience to raise its ministers' gargantuan pay when about 60 households lose their home every monthly. sigh....sigh.....
leongszehian.com
“895 HDB flats repossessed since 2003?"
By Leong Sze Hian
I refer to the article “895 HDB flats repossessed since 2003” (TODAY, Feb 2
.
It states that “seven per cent of those who took HDB mortgage loans were in arrears of at least 3 months”.
As at the end of last year, banks have completed the mortgagee sale of 895 HDB flats financed with bank loans since the start of bank origination in January 2003. In recent months, the rate is about 60 cases a month.
Seven per cent of the 89,000 HDB flats with bank loans means that about 6,230 HDB flat owners have not been able to pay for more than 3 months. Some of these may become foreclosures.
As more Singaporeans have no choice but to take bank loans, because they have used up the two HDB concessionery loans allowed by just upgrading once by themselves or with their parents, more may lose their flats.
If there is a shortfall between the foreclosure sale proceeds of the flat and the housing loan outstanding, banks have sued such flat-owners for bankruptcy.
Banks have repossessed 1,445 flats since HDB bank loans started in January 2003, and have sold 895 of them. This means that 1.6 per cent of HDB flats on bank loans have been foreclosed.
As I understand that there are about 800,000 HDB flat-owners, if they had all been with bank loans, just imagine the amount of misery in Singapore with about 12,800 flat-owners having been foreclosed (1.6% foreclosure rate). If the average number of members in a flat is four, it translates to about 51,200 people who may be adversely affected. We should be concerned that every month, about 60 families are losing their homes.
In countries like the United States, which is arguably the highest credit-consuming country in the world, the delinquency rate is 2.11 per cent, the highest in four years, for real estate home loans which are over 90 days post-due or in foreclosure.
SingaporeÂ’s current rate of over seven per cent (seven per cent in arrears over three months plus 1.6 per cent foreclosure) may be about three times that of the United Sates.
How do we compare with other countries, particularly our neighbours ? I think at the rate that we are going, we may chalk up another top world ranking in this regard.
As to “from 2002 to 2006, some 360 households voluntarily surrendered their flats after defaulting on their mortgage loan repayments”, can the HDB please clarify what do they mean by “voluntarily surrendered”? Are they implying that no one has ever been forced to vacate a flat ? I am somewhat puzzled as to why anyone would “voluntarily” give up the family home, all the CPF life savings of the owners, and maybe continue be in debt to the HDB for any shortfall between the market valuation and loan outstanding ?
A key finding of a research paper by Associate Professor Ong Seow Eng, Research Director of the Centre for Real Estate Studies at the National Univesity of Singapore, is that protecting the CPF utilised in a mortgage, reduces significantly the tendency of borrowers to be delinquent on their mortgages. Why are HDB concessionary loan mortgages not on a non-recourse basis, like practically all residential mortgages in the United States ?
On non-recourse mortgages, the borrowers are not liable for any shortfall between the repossessed flatÂ’s market value and the outstanding loan balance.
Perhaps the only salvation for the thousands who are in arrears (HDBÂ’s annual report said that it provided financial assistance to 28,386 flat-owners in its last financial year), is for their flatsÂ’ value to increase at a rate higher than the 2.6 per cent accruing on their indebtedness, into the future.
How many more Singaporeans have to lose their homes and CPF, before we continue to describe a 1.6% foreclosure rate as being not very high?
-
Hypocrisy is an art and they are very good at it.
895 is a small number and don't even think that they will be bothered.
Votes, power and reputation, among a few other qualities, are all that matter to a politician. -
Elites calculate like this.
800,000 flat owners
895 flats repossessed
895/800,000=0.001119
Round up 0.001119 to 2 decimal places=0.00
Practically zero.
Then convert 0.00 as a percentage, round up to 2 decimal places again, equals 0.00%
So, whatÂ’s the problem? -
Well, but generally, 895 is really a small number but of course the government would aim to reduce the number of repossesed flats every year
-
Well, but generally, 895 is really a small number but of course the government would aim to reduce the number of repossesed flats every year
small? how to reduce? would the PAP supporters please enlighted us how? -
Originally posted by reyes:
they will simply blame those people when they started the problem with their exorbitant pricing... charge the people exorbitant fees for renting flats (99 years) built on state land (which should be free if you are a citizen of Singapore and considering that housing is a necessity... not luxury that you can do without.
[b]Well, but generally, 895 is really a small number but of course the government would aim to reduce the number of repossesed flats every year
small? how to reduce? would the PAP supporters please enlighted us how?
[/b] -
I understand where u came from...
But can u comprehend the economic implications if u make a 5-rm flat affordable by a family whose household income is $1000? -
Conscience? I doubt they have one in the first place....Originally posted by pearlie27:i just don't understand how our govt still has the conscience to raise its ministers' gargantuan pay when about 60 households lose their home every monthly. sigh....sigh.....
leongszehian.com
“895 HDB flats repossessed since 2003?"
By Leong Sze Hian
I refer to the article “895 HDB flats repossessed since 2003” (TODAY, Feb 2.
It states that “seven per cent of those who took HDB mortgage loans were in arrears of at least 3 months”.
As at the end of last year, banks have completed the mortgagee sale of 895 HDB flats financed with bank loans since the start of bank origination in January 2003. In recent months, the rate is about 60 cases a month.
Seven per cent of the 89,000 HDB flats with bank loans means that about 6,230 HDB flat owners have not been able to pay for more than 3 months. Some of these may become foreclosures.
As more Singaporeans have no choice but to take bank loans, because they have used up the two HDB concessionery loans allowed by just upgrading once by themselves or with their parents, more may lose their flats.
If there is a shortfall between the foreclosure sale proceeds of the flat and the housing loan outstanding, banks have sued such flat-owners for bankruptcy.
Banks have repossessed 1,445 flats since HDB bank loans started in January 2003, and have sold 895 of them. This means that 1.6 per cent of HDB flats on bank loans have been foreclosed.
As I understand that there are about 800,000 HDB flat-owners, if they had all been with bank loans, just imagine the amount of misery in Singapore with about 12,800 flat-owners having been foreclosed (1.6% foreclosure rate). If the average number of members in a flat is four, it translates to about 51,200 people who may be adversely affected. We should be concerned that every month, about 60 families are losing their homes.
In countries like the United States, which is arguably the highest credit-consuming country in the world, the delinquency rate is 2.11 per cent, the highest in four years, for real estate home loans which are over 90 days post-due or in foreclosure.
SingaporeÂ’s current rate of over seven per cent (seven per cent in arrears over three months plus 1.6 per cent foreclosure) may be about three times that of the United Sates.
How do we compare with other countries, particularly our neighbours ? I think at the rate that we are going, we may chalk up another top world ranking in this regard.
As to “from 2002 to 2006, some 360 households voluntarily surrendered their flats after defaulting on their mortgage loan repayments”, can the HDB please clarify what do they mean by “voluntarily surrendered”? Are they implying that no one has ever been forced to vacate a flat ? I am somewhat puzzled as to why anyone would “voluntarily” give up the family home, all the CPF life savings of the owners, and maybe continue be in debt to the HDB for any shortfall between the market valuation and loan outstanding ?
A key finding of a research paper by Associate Professor Ong Seow Eng, Research Director of the Centre for Real Estate Studies at the National Univesity of Singapore, is that protecting the CPF utilised in a mortgage, reduces significantly the tendency of borrowers to be delinquent on their mortgages. Why are HDB concessionary loan mortgages not on a non-recourse basis, like practically all residential mortgages in the United States ?
On non-recourse mortgages, the borrowers are not liable for any shortfall between the repossessed flatÂ’s market value and the outstanding loan balance.
Perhaps the only salvation for the thousands who are in arrears (HDBÂ’s annual report said that it provided financial assistance to 28,386 flat-owners in its last financial year), is for their flatsÂ’ value to increase at a rate higher than the 2.6 per cent accruing on their indebtedness, into the future.
How many more Singaporeans have to lose their homes and CPF, before we continue to describe a 1.6% foreclosure rate as being not very high? -
I know what OM would say. "If you can't afford to live in 3 room HDB then downgrade to HDB 1 room, if you can't afford to live in HDB 1 room, then live in void decks of HDB, if you can't live, then don't live. There is always the MRT tracks. We are not a welfare state."
-
Actually no. OM himself said once these people were too stupid and careless with their money and therefore deserved their fate.
Or something of the like. So therefore they deserved to live on the streets. He simply supported what Mah Bow Tan said in Parliament. -
small? how callous can you be!Originally posted by shade343:Well, but generally, 895 is really a small number but of course the government would aim to reduce the number of repossesed flats every year
895 for 4 years means on the average every two days one household lost its home. and it becomes worst this year - about two households lost their home everyday!
no one would want to lose his/her home. everyone works very hard to have a house/flat and will definitely not want to lose it.
maybe our ministers need to have their pay raised to 2 mil before theywould think of a solution to prevent singaporeans from losing their homes. -
It is really a very minute figure in percentage if you take the whole population into perspective.Originally posted by lotus999:small? how callous can you be!
895 for 4 years means on the average every two days one household lost its home. and it becomes worst this year - about two households lost their home everyday!
no one would want to lose his/her home. everyone works very hard to have a house/flat and will definitely not want to lose it.
maybe our ministers need to have their pay raised to 2 mil before theywould think of a solution to prevent singaporeans from losing their homes.
Really, the govt doesn't care. They are more focused on how to market S'pore to the world, devise schemes to "help the poor", raising public sector salaries etc. -
Have lah.Originally posted by ShutterBug:Conscience? I doubt they have one in the first place....
You just have to pay them 2million dollars a year before they show you they have one.
-
it a problem HDB face long ago which is why HDB open up and let bank deal with the loan part.
too bad for those who are not good at numbers? do not know the meaning of money. with banks, you can not pay? say bye bye to your house.
with HDB?
HDB policy is a good one. Every citizen must have a roof over his head. (ju zhe you qi wu)
895 houses???
895 x 3 =????
that is the number of ppl homeless now? why HDB can not let them stay at those not sold flat? rent it to them lar. will HDB do that? NO, when ppl start not to pay, they can do nothing. can not evade them as it dun go along with it policy.
interest going up soon.... we will see more HDB flats being repo by banks. anyone knows why OCBC share not moving upward? it has the most repo HDB if i am not wrong. -
Welfare is a dirty word remember?
-
Right from the day HDB handed over financing to banks, I knew they are washing their hands off Bad Tenants - meaning they leave the dirty work of evicting people to the banks.
As a gov body, whether tenants pay or not, they should see that people are sheltered, and work out ways so that they can pay up. I know they're only interested in protecting their precious policies, as with anything related to them, it is their policies that comes first. Whether you die or you live, that comes last...
That's the way our gov operates... and I believe that's the way they shall go out in time.... -
You know, your comments are often so funny...Originally posted by charlize:Have lah.
You just have to pay them 2million dollars a year before they show you they have one. -
Hey, I am being serious here.Originally posted by ShutterBug:You know, your comments are often so funny...
Really. -
alright, a show of
to those
who is paying his or her public housing loan by bank and
a show of to those by HDB loan policy and lastly
a show of
to those had pay up the loan or had cash out and left SG. 
-
This article should be sent to Minister of State Lee Yi Shyan for the self-ingratiating speech made to justify the Master's Demand for a huge MILLION DOLLAR INCREASE in Pay Package for the Ministers.
The same should be sent to Defense Minister Teo Chee Hean for his similar speech to the Civil Servants that litterally placate the Civil Servants with a modest salary increase that will assure their support for a spectacular increase to the wages of the Elected President, the PM and the entire Cabinet.
All the self-justifying reasons cannot possibly explain for the wrong policies made by this Government that has resulted in Singapore having a higher rate of defaulters, when our population is less than one tenth the size of the USA's population count.
The big lie is slowly unravelling.