50% Of Cash Proceeds From Sale To 2nd Hdb Loan

[jn_teng 0]

HDB implemented this new policy in March 2010.

I just had my divorce finalised in March 2010. I've just sold my matrimonial house (1st marriage) with the 1st appointment in June and the 1st appointment for my new house (bought with fiance) is in July.

I've emailed to HDB to appeal for a waiver of this new policy as after the sales of the house, the cash proceeds will already be splitted as this is a divorce case. And after splitting, if HDB is going to split it again, taking part of the proceeds for my 2nd hdb loan, I would not have enough to repay my COV for the new house.

I emailed HDB on the 15 April and it has been 2 weeks with no reply.

I managed to get the DID of the officer in charge, and called for the past 2 days and no answer. Left messages but she didn't call back either.

Anyone is able to advise what I should do next?

Or has anyone appealed for waiver before?

Thanks alot!

[red_kitty_29 0]

HDB implemented this new policy in March 2010.

I just had my divorce finalised in March 2010. I've just sold my matrimonial house (1st marriage) with the 1st appointment in June and the 1st appointment for my new house (bought with fiance) is in July.

I've emailed to HDB to appeal for a waiver of this new policy as after the sales of the house, the cash proceeds will already be splitted as this is a divorce case. And after splitting, if HDB is going to split it again, taking part of the proceeds for my 2nd hdb loan, I would not have enough to repay my COV for the new house.

I emailed HDB on the 15 April and it has been 2 weeks with no reply.

I managed to get the DID of the officer in charge, and called for the past 2 days and no answer. Left messages but she didn't call back either.

Anyone is able to advise what I should do next?

Or has anyone appealed for waiver before?

Thanks alot!

jn_teng,

i think hdb gets hundreds of mails daily, may i suggest you call the hdb hotline & an officer wl b able to attend to you....

but i belif COV has to b pd by cash & not fr proceeds of ur flat sale..u may want to clarify w hdb on this, cos if its their policy,i dun think can b waived

how much is the COV for ur new flat?

Edited May 15, 2010 by red_kitty_29

[Plastic3 0]

You can keep minimum $25,000 of your sales proceeds.

Edited May 16, 2010 by Plastic3

[jn_teng 0]

red kitty COV for the new flat is $42K. Actually sales proceeds are cash that belongs to us and we should have the right to use the cash belonging to us, to pay for COV for our new house...rather than using it to reduce the loan amount. I just do not think it's fair for HDB to "decide" for us how to use cash belonging to us.

Plastic3 yep yep, i'm aware of this. but it's not sufficient to cover my COV for new flat. I'm estimating my cash proceeds to be about $50K after calculation

[jeda 0]

red kitty COV for the new flat is $42K. Actually sales proceeds are cash that belongs to us and we should have the right to use the cash belonging to us, to pay for COV for our new house...rather than using it to reduce the loan amount. I just do not think it's fair for HDB to "decide" for us how to use cash belonging to us.

Plastic3 yep yep, i'm aware of this. but it's not sufficient to cover my COV for new flat. I'm estimating my cash proceeds to be about $50K after calculation

if you had used the above argument with HDB, they will tell you that you are not obliged to take their housing loan and is free to take up bank loan. bank loan also need upfront certain % payment in cash (i think). if we want to use their concessionary interest rate, we dont have other rights to bargain with them.

i had already given up talking reason with them as they will use their policy rule book to talk to you.

[Plastic3 0]

if you had used the above argument with HDB, they will tell you that you are not obliged to take their housing loan and is free to take up bank loan. bank loan also need upfront certain % payment in cash (i think). if we want to use their concessionary interest rate, we dont have other rights to bargain with them.

i had already given up talking reason with them as they will use their policy rule book to talk to you.

Bank loan need to pay 5% downpayment

[red_kitty_29 0]

if you had used the above argument with HDB, they will tell you that you are not obliged to take their housing loan and is free to take up bank loan. bank loan also need upfront certain % payment in cash (i think). if we want to use their concessionary interest rate, we dont have other rights to bargain with them.

i had already given up talking reason with them as they will use their policy rule book to talk to you.

Jeda, gd pt!

Hey pals,

......bank loan requires 5% cash deposit of valuation, + COV pd full cash, ya but banks now offer competitive rates so it could even be lower den HDB rates, provided int rates dun go too high,perhaps chuz a fixed rate package.... wow $40k COV is really high but a norm these days...better faster think of a way to raise this cash quick!

[jn_teng 0]

HDB rejected our appeal. But we are still trying to negotiate with them..hope it will work out right. keeping our fingers crossed*

[Plastic3 0]

HDB rejected our appeal. But we are still trying to negotiate with them..hope it will work out right. keeping our fingers crossed*

Hope things workout well for you.

[tower 0]

HDB is not a charity organisation. Since they have implemented this new policy, a lot of genuine people don't have enough cash upfront to buy another smaller flat. They may have solve one problem of speculation but they created another family/social problem of inability of low/middle income owners to own a "affordable" HDB flats. Although I wish u the best but honestly, I doubt they will allow ur appeal to succeed. If not, everybody would use this loophole. Perhaps a solution is not to use the concessionary loan for the 2nd time since current SIBOR rates are very low.

[waileong 0]

Take a bank loan. End of story.

[bepgof 20]

Take a bank loan. End of story.

Finally someone said what I almost wanted to point out on this this issue. Why like HDB "concessionary" mortgage loan so much?, appeal again & again?, 2.6% interest good mair?

Or name in "blacklisted list" hold by banks? Pardon me, just think of the possibility.

Edited June 22, 2010 by bepgof

[davidbslee 1]

Finally someone said what I almost wanted to point out on this this issue. Why like HDB "concessionary" mortgage loan so much?, appeal again & again?, 2.6% interest good mair?

Or name in "blacklisted list" hold by banks? Pardon me, just think of the possibility.

Edited June 24, 2010 by davidbslee

[bepgof 20]

I think people wanted to appeal by taking HDB loan is because HDB give more chances to those always late in repayment which I think so because my friend own 30k to HDB and somemore HDB give her so many chances and even give her new flat to choose from their left over BTO unit. As now new rules, so I think more and more people will still try to go for HDB loan if possible. Mine is bank loan and I got no choice cos I downgraded from 5rm to 3rm as old rules cannot allow me to take 2nd chances HDB loan unless I pay levy fees which I dun think alot of people want to and also now because of the 50% proceed issus, people will also hunt for bank loan and seller will ask more and more COV because of this 50% issus. If I can convert back to HDB bank now and dun have to pay back the 50%, I will do it.

Hopefully another new rules come out for people that already in bank loan can convert back to HDB loan for them to use their 2nd chances without paying the 50%. Haha!, I think I am dreaming..

Someone highlighted HDB is not a charitable org, anyway, O$P$, so far HDB got charge interest for late payment or not?

Edited June 23, 2010 by bepgof

[davidbslee 1]

Someone highlighted HDB is not a charitable org, anyway, O$P$, so far HDB got charge interest for late payment or not?

Edited June 24, 2010 by davidbslee