Force-sold transactions for properties bought after 2013 are very rare.
You need many conditions to be satisfied before it happens, especially for lower quantum properties, say those with loans less than 1million, average housing expenditures around or under 4K. Two persons below 50 each with income of 6K generates more than $3K of CPF combined every month on average.
1. Valuation must be super low so that they cannot refinance.
2. Both husband and wife need to lose their jobs at the same time.
3. Both are not able to find new jobs.
4. Both do not have a buffer of savings and/or CPF or other investments to cash out.
5. Both cannot find a relative or friend to help tide them over.
For all other cases, I believe the sellers would have enough time to negotiate to sell. Maybe still a fire sale below valuation for downgrading purposes (remember that they can still buy resale HDBs), but no one will be a sitting duck to wait until everything depleted then let the bank force-sell.
To meet all the five sway conditions and kenna force sell, must be really really rare.
Originally Posted by
teddybear
Won't be surprise to see many big "fire-selling" in the coming recession - Just that the "sellers" are not willing owners, but force-sold by banks!
The property cooling measures (like TDSR) didn't help to prevent "force-selling", but actually help to create and cause more "force-selling"!
When those owners' properties are being force-sold, it is not a decision they can decide that they don't want to sell, and whether they need to pay ABSD and will be hit with SSD or not etc.........
Last edited by Kelonguni; 21-11-16 at 20:48.
The three laws of Kelonguni:
Where there is kelong, there is guni.
No kelong no guni.
More kelong = more guni.