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Thread: Beware of housing loan progressive releases

  1. #1
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    Beware of housing loan progressive releases

    Bought an house end of 2002 when itís still new launching, the house now ready to handover. Unfortunately, I received a handover letter with attached outstanding bill for 5k++ . Itís due to the late payment interest charge for the whole home loan progressive releases .

    Investigate shown that the 2nd payment cheque issued by banker was misplaced by the lawyer . As the result, the 3rd payment was use to replace 2nd payment, and 4th payment was replaced 3rd payment and ÖÖ.till the end.

    So, hope that if you are still entertaining home loan progressive releases, please pay attention and follow up tightly with the developer when they are requesting for money releasing. Ensure that the developer account statement already credit the payment ever the banker noticed you that they release the payment. Bícos for any delay even single day, purchasers are liable for the late payment .

    When received loan release claimed from developer, itís only takes you about 5 mins for each follow up with the banker and developer. Rather than spent average 1 hr each day to deal with 3 parties Ė banker, developer, solicitor.

    LuckyÖÖthe issue settled already after spent 3 weeks time dealing with relevant parties, finally the lawyer willing to bear the interest charge.

  2. #2
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    Re: Beware of housing loan progressive releases

    Wow.... Who's your lawyer? Is it the lawyer who represent the bank? So 'eat dead cat'?

    I think sometimes, there are a few days interest, and would amount to a few hundred - and we have to pay the interest ourselves...

  3. #3
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    Re: Beware of housing loan progressive releases

    Clearly the lawyer is at fault and should bear the consequences but some people are very stubborn, luckily your lawyer is willing to admit their mistake.

  4. #4
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    Re: Beware of housing loan progressive releases

    Quote Originally Posted by eddypun
    Wow.... Who's your lawyer? Is it the lawyer who represent the bank? So 'eat dead cat'? ............
    Means what ah ??

  5. #5
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    Re: Beware of housing loan progressive releases

    Joe,
    I'm quite sure the Chinese idiom "catching someone to eat a dead cat" means to find a scapegoat, someone to take the blame. However, I'm not sure what Eddy meant in the context of what he wrote. I too am confused.

  6. #6
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    Re: Beware of housing loan progressive releases

    Thanks kw. I think I understand the context now.

    Meanwhile, newer, did the bank and the developer NOT send you statements and notices of progress payments done ..... as and when such payments were indeed done ?

    I cld be reading this wrongly but you seem to have found out several years later about the 2nd payment that went missing. If statements were forthcoming from the bank and notices from the developer, you shd have been able to reconcile at a much earlier stage !!!!

    Nevetheless, all is not lost it looks like ....... congrats.
    But u say that " finally the lawyer willing to bear the interest charge ".
    (1) Has he indicated his willingness in writing ? If not get it writing.
    (2) Has the bank indicated that they will assist you in getting this amount from the lawyer ? If not get a written assurance. The bank cannot take a back seat. The lawyer cannot be made to "eat dead cat".
    (3) Have you written to Bank Negara's Complaints Bureau ? If (1) AND (2) dont come about pls do write to the Complaints Bureau. believe me, a note to the bank from these guys makes banks sweat.
    Last edited by Joe Gomez; 20-01-2005 at 10:49 AM. Reason: typo

  7. #7
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    Re: Beware of housing loan progressive releases

    'eat dead cat' = makan kucing mati
    The mistake is not yours fault but ask u go to eat kucing that died already.

    Ya, both banker and developer did send the statements. When developer request for $$$, they will cc me a copy. But when they didnít receive $$$, they didnít inform me. I was informed that the the person supposed served me already resigned half way. When bank issued out a cheque, bank will cc me a copy with the cheque number as well. Every month I paid the up-to-date interest. Hence, I assumed everything on the track.

    Itís not easy to reach the state where the lawyer confessed to bear the interest charge. Every party like cow u knows. U push one step, they move 1 step. Be a police to order them how to investigate. When the bank knew that problem came from lawyer side, they not perturbed anymore. The bank should detected earlier the cheque never be issued. I did try claim the extra interest (abt 2k+) but they declined. They just gave foolish reason that the $$$ they reserved in current account already, so they not able to do other investment.

  8. #8
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    Angry Re: Beware of housing loan progressive releases

    Hai ya.....

    I also faced something similiar to your case ah at 1st stage of bank loan release.
    When reaching release due date, the bank just realised that the loan offer letter got typist error (internal fault). somemore the loan agent was resigned in between. no body seem like follow up the case, even we were sitting dark at time. (Need to re-sign new offer letter with different agent). Till, we found out the money havent released after the due date, we made our self very clear to the bank, we will not going to bear the interest. The bank keep saying that we need to bear the interest.....

    I still remember the scene very clear in my mind, I never seen my wife be so mad and fiece in my life, we made a trip to the bank and we ran through every departments to look for person in charge. Of course, everyone was pushing here and there. My wife very angry and took all the relevent personnel name and their position, threaten them with lodging the complaint letter to the head quarter and look for branch manager to give explanation on this issue. She also threaten them that will make it public, publish in newspaper.

    After this event, they never late in our progressive releases in other stages............

    Although the interest is not so significant in my case, I still think that the mistake done by developer, lawyer or banker shouldn't imposed to the purchaser.......

    Conclusion,,,, Sometimes, we need to stand firm and fight for our right. (Actually, my wife is a very soft - spoken lady, to the extream condition she will become horrible and terrible )

    Ha.... Happy Investing and Buying Property.......

  9. #9
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    Re: Beware of housing loan progressive releases

    StaedtlerPencil,
    I understood how yours wife feeling. For me, really nightmare. RM5k man !! A lot of house stuff can buy with 5k.

    Lucky I got opportunity to meet 1 of the bar council VP, he told me that itís the fact that was the lawyer mistake, if the lawyer refused to liable, u can get the lawyer into trouble.

    Then the next day, I sent letter to the lawyer firm, request them to settle within xxx day. If not I will take further action. The verdict really good, within 3 days, they sent the cheque to the developer.

  10. #10
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    Re: Beware of housing loan progressive releases

    banks r also branded as 'AH LONG'.......AUTHORISED AH LONG ...if they can charge u interest even when it;s not yr fault at times.
    the standing instruction to deduct my home installment wasn't succcessful becos of their system fault but yet they fined me for late payment.
    if u don;t notice it, they'll charge u happily. if u did, they just apologise & remit back the $. it happened to me, tht's y i know. SUCKERS............

  11. #11
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    Re: Beware of housing loan progressive releases

    newer, gd 4 u, u did right no matter how useless each cow was or how small each step they took. just 2 alert u in case bank charged u interest on the so called release. look back yr bank statement or ask bank 4 b&w detailed listing of interest charged on progress release. since the chq was misplaced and obviously not cleared till the fiasco was discovered, it effectively means that u never owed the bank that amount of progress release until the very end. that means the bank cannot claim interest for that period (amount would b cls to what developer charged unless yrs is 1 of those cheap cheap 1yr loans). if u don't get it, i can provide private tuition, just pm me. but don't expect early reply cos i don't log in often tese days.

  12. #12
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    Re: Beware of housing loan progressive releases

    Actually I did try to claim the extra interest (rm2.5k) that I had paid to the bank. The bank official gave 1001 reasons why they denied returning. 1 of the reason was, the bank already transferred the money to their current account, so they arenít earning any single cents from the saving or investment, the money just sleeping there for more than 14 months. At the means time, the ďkindlyĒ lawyer firm willing to responsible for their fault, so I not dig anymore deep.

    Btw, what is pm? I saw a lot of pm hereÖ.pm there Ö.

  13. #13
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    Re: Beware of housing loan progressive releases

    can we hv a deal - split me 80 u 20. give me the authority, i'll get that 2.5k back 4 us.

    pm stands 4 private message. see the top right corner of this screen with the welcome msg? click on the Private Messages its sort of an e-mail facility. extensively enhanced from original version but much more user friendly. but msg size limited 2 1000 chars if the original specs still stands.

    cheers for the rooster ....

  14. #14
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    Re: Beware of housing loan progressive releases

    So sorry to read you have to pay RM5k+ interest, but actually it is your fault. You should have read the statement saying how much progressive payment you have made.

    Don't expect the bank to give you back any money, or to waive their interest. As far as they are concern it is your fault and they have ALL THE RIGHTS to charge you the interest - after all it is their business to charge interest otherwise where they get the money.

  15. #15
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    Re: Beware of housing loan progressive releases

    no wander newer hasn't replied - caught btwn the devil n the deep blue sea? or the angel n the devil's advocate?

    with starrnorth88 leading the banker's stance n me the ever nt estb rebellious pro consumer blah blah blah ...

    so, newer, can we hv another deal, the original one plus drag in starrnorth88 to top up dollar 4 dollar if i can help u lay yr fingers on yr faithfully departed bank notes.

    game 4 the challenge, starrnorth88?

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