Chin Teck Wui asked 9 years ago
hi Mr. Lau,
i’m in this situation where i have a mounting debts issue which i can’t service due to unstable income. 7 years ago when time was good i had purchase a property where it have appreciated in value to RM 1.5 m (certified by a valuation report) with total outstanding loans of about RM 600 k from 2 banks. As time is bad now, i can’t sell the said property which i hope can materialized to offset the debts. What other methods available for me to clear the outstanding debts?
KCLau Staff answered 9 years ago
Hi,
There are only two ways to cash out your equity from your existing home:
1. Refinancing
– I think it is hard for you now since you have trouble servicing other debts on hand. If all these debts show up in your CCRIS report, it would be extremely hard to get bank to approve new loan for you.
2. Sell the property
– These few years are hard for seller because it is a buyers’ market. It still is right now. In desperate time, you may sell the property slightly below market price to attract potential buyers. Engage more agents, and be more proaactive to find a buyer.
Good luck!