Top up loans due valuation drop

[invigorated]

Just to get some views here as I have often heard that Banks generally do not ask for top up due to drop in valuation. But just read on yahoo that some owners have been asked to do so. Anyone has seen this happen before?

"Some fire sales last year occurred because buyers were asked by banks to top up their loans due to a decline in the valuation of their properties and instead of putting in additional cash, they decided to exit their investment, Han said."

Link: https://sg.finance.yahoo.com/news/si...224157898.html

[teddybear]

Generally no top up.
Those asked to top up are those who missed loan instalment, even if just 1 time only (or even late payment)................
So, don't ever miss your instalment payment (not even late payment)!

There are cases reported in newspapers before, end up the banks clarifying the truth: That these people missed loan instalment! (and they tried to hid this fact - Think about it, telling people you miss loan instalment is like telling people you can't even afford to pay the 1 month loan instalment? - Not a good thing to let their relatives and friends know...)

Banks perceive people who miss loan instalment payment as high risks and hence will start to ask for top up when their valuation is below market price once they miss loan instalment payment.......

Just to get some views here as I have often heard that Banks generally do not ask for top up due to drop in valuation. But just read on yahoo that some owners have been asked to do so. Anyone has seen this happen before?

"Some fire sales last year occurred because buyers were asked by banks to top up their loans due to a decline in the valuation of their properties and instead of putting in additional cash, they decided to exit their investment, Han said."

Link: https://sg.finance.yahoo.com/news/si...224157898.html

[Allthepies]

Teddybear, thanks for clarifying and sharing.