Interpretation of the phenomenon of supply cessation

How troublesome it is to cut off mortgage payments. The phenomenon of cutoffs in the property market in Shenzhen has attracted full attention. People in the financial and legal circles told Jiangsu Business Daily that it is impossible for home buyers to distance themselves from the relationship after the supply is cut off: in addition to being included in the central bank's credit "blacklist", the part of the house that is not enough to repay the loan after the house is auctioned must still be repaid. However, there is currently no possibility of a huge drop in housing prices in Nanjing, and residents do not have to worry about cutting off their supply. Many Nanjing home buyers may have never thought about "cutting off supply". In Shenzhen, more and more home buyers are now choosing to cut off their housing supply.

After CCTV’s “Economic Half Hour” report, Shenzhen’s “cutoff of supply” phenomenon has become a new topic among people across the country. What kind of drop in house prices will force home buyers to make this decision? After cutting off the supply, can they cut off the relationship with the bank? How much trouble will this behavior bring to future life?

Jiangsu The Commercial Daily interviewed people from the financial and legal circles to provide readers with a comprehensive interpretation of the new property market phenomenon of "severance of supply."

Current situation: A house that cost 23,000 yuan per square meter last year is now 11,000 yuan per square meter. House prices and rents have both dropped. Some real estate prices in Shenzhen have dropped by half.

What is the current situation of the Shenzhen property market? Reporter interviewed yesterday an insider. Mr. Xu came to Nanjing from Shenzhen three years ago due to a job change. He is engaged in real estate agency. He currently has many friends in Shenzhen who are engaged in real estate sales.

Severance of supply

Mr. Xu told reporters that he had returned to Shenzhen last month and that housing prices in Shenzhen were already very different from those in 2007. "The listing price of second-hand houses in Bolin Garden in October 2007 was 12,000 yuan/square meter, and the actual market transaction price in July 2008 was only 9,000 yuan/square meter; the price of Jiadoli Garden in 2007 was 13,000 yuan/square meter, and this year it was 9,500 yuan/square meter. rice was sold; Lufeng Cuiyuan was quoted at 13,000 yuan/square meter last year and sold at 9,500 yuan/square meter this year... There are too many such examples to count."

"And Shekou, Shenzhen. Judging from the decline of some properties in the region, these are nothing." A friend of Mr. Xu told him, "The average price of a large market in Shekou area has dropped from 23,000 yuan/square meter last year to 11,000 yuan/square meter now. meters, the average price has dropped by more than half. In fact, the location of this property can be said to be very good, because Shekou and Hong Kong are across the sea. The opening of the Shenzhen Bay Bridge between the two places in 2007 has caused the housing prices in Shekou to skyrocket. The property is right next to the Shenzhen Bay Bridge and was once very popular. This is why its average price is 23,000 per square meter. However, due to the cold market this year, the developer has only adopted a price reduction strategy. The current price per square meter is only 11,000 yuan. And the rental price of this property has also dropped. Last year, the monthly rent for a 130-square-meter house reached 8,000 yuan, but this year it can only be rented for 3,500 yuan."

Personally experienced, “I don’t want this house anymore!”

Yingjunnianhua is a real estate development in Buji, Shenzhen City. Ms. Li bought a 40-square-meter apartment here with a mortgage at the beginning of this year. Residence. But after paying three months of monthly payments, Ms. Li decided to stop paying the monthly payments to the bank. She no longer wanted the house.

Ms. Li said: "It's too much. We are trying our best to lower the price! Now the whole real estate in Buji, Yingjun is very famous, and it is famous for its price reduction."

Ms. Li purchased The unit price of Yingjunnianhua is more than 11,000 yuan/square meter. Many owners who bought earlier have higher prices, with the highest price being more than 13,000 yuan/square meter. But now, the price of the newly opened Yingjun Nianhua Phase III here is only 6,888 yuan/square meter, a drop of more than 40%.

Ms. Li said: "The price drop is so scary. Today it is 6,888 yuan. It is possible that it will be 5,888 yuan in another month."

Not only that, Li Miss and the others bought a rough house. Now the new house for 6,888 yuan not only comes with fine decoration, but also has a series of discounts.

Mr. Liu, the owner of Yingjun Nianhua in Shenzhen, told reporters: "It is said that the next step will be to give away a car. When I came last time, the developer promised that it would give away a car to 10 houses."

Ms. Li said that this house has a real negative equity because it cannot be sold for 300,000 yuan, but she owes the bank a loan of 400,000 yuan. “I’d rather not own this house, not want anything else, or rent a house in the future—that’s all.

"Ms. Li just cut off the payment this month, and there were two other people who cut off the payment together with her.

Ms. Li told reporters: "At first, the bank called me every day, and then it turned into sending messages every day. . Later, they told me that a lawsuit letter would be issued to me in three months. "In this regard, Ms. Li made it clear that she would not go to court if it were held, and would not care about it anyway.

For home buyers, the cessation of payment means monthly repayments to the bank. Everything was in vain. What's more serious is that her name will be on the bank's credit blacklist from now on. Applying for a credit card or loan in the future will be a problem.

She will have to remember the "law" for the rest of her life. "Credit debt", lawyers remind that "cutting off supply" will not only cause financial damage to home buyers, but once they are included in the "blacklist", future consumption and loans will be affected

"Shenzhen housing prices plummeted, falling The range has reached 40%. "Recently, Zhu Xiaofei, director of the real estate department of Jiangsu Suyuan Law Firm, has been paying attention to the real estate market across the country. Regarding the phenomenon of some loan house buyers "cutting off their mortgage payments," Zhu Xiaofei said that banks are facing "moral hazard." But he reminded the majority of house buyers. People, "cutting off the payment" does not mean that nothing happens. On the contrary, there are many hidden dangers. For example, you will lose your bank credit when you buy a house again. If you have money and deliberately fail to pay it back, you may be detained.

More than "cutting off"

One of the most direct impacts of "cutting off" on borrowers is economic risks. Relevant sources told reporters that after borrowers "cut off", in addition to paying normal principal. In addition to the deposit and interest, there will also be penalty interest, which is generally calculated at 2.10% per day. Moreover, according to the bank's regulations, the bank has the right to calculate compound interest after the "stop payment", which is a huge burden for the borrower. .

“Don’t think that you will be fine if you don’t want the house. The bank will still cause trouble for you!” Lawyer Xiao Peng from the Consumer Credit Specialized Legal Service Center of Jiangsu Hailang Law Firm told reporters that people who want to buy a house apply for a loan at the bank. After obtaining a mortgage loan, there is a loan contract relationship between the two. The borrower mortgages the property to the bank and must repay the loan on time.

Consumption and re-loans are restricted, and the loan buyer "breaks off payment." "After that, you will also face a credit crisis. "Giving up repaying the loan will be a stain on personal credit, and future consumption and re-loans will be subject to various restrictions. "Lawyer Xiao Peng from the Consumer Credit Specialized Legal Service Center of Jiangsu Hailang Law Firm reminded.

Lawyer Xiao Peng introduced that now, the People's Bank of China has established a personal credit reporting system, which is networked with major banks across the country , if the borrower is overdue for a certain period, a bad credit record will be generated, that is, it will be entered into the "blacklist", which will have an impact on the borrower's refinancing, such as when purchasing a home again. Bank credit will be lost and loans will be more difficult. It is reported that once the system is connected to the industrial and commercial, taxation and other authorities, borrowers may encounter obstacles when applying to open a company in the future, and it will be difficult to enjoy taxes in the future. Even children going abroad will be affected by preferential policies.

For this reason, lawyers remind home buyers to be cautious before deciding to buy a house with a loan.

It is predicted that Nanjing will not "cut off supply." "Risk

" The suspension of mortgage payments in Shenzhen is only a local individual case, and Nanjing has not heard of it so far. "Wang Chengfu, deputy general manager of the personal business department of Huaxia Bank Nanjing Branch with nearly 10 years of experience in the mortgage business, told reporters that the phenomenon of mortgage cessation due to income not keeping up with mortgage expenditures occurs across the country, but like Shenzhen, due to the decline in housing prices It has not happened in Nanjing yet, which has caused buyers to cut off their mortgage payments. However, this phenomenon should alert the banking industry.

So, under normal circumstances, how will banks deal with this situation? Wang Chengfu said. Introduction: Generally speaking, if a home buyer is overdue in repaying the loan in the first month, the bank will notify the home buyer by phone because some people are not malicious in repaying the loan, but may be due to various reasons such as business trips and family changes. But in the second month, if the house buyer still fails to repay the loan, the bank's loan officer will come to him or go directly to his unit to demand payment. If in the third month, the house buyer still cannot repay the loan, the bank will issue him a loan. Lawyer’s letter. At this time, it also marks that the disposal of the house buyer’s property has entered into a judicial process. “No bank wants to see it come to this point. "Wang Chengfu said.

Once it enters the judicial process, it also means that the buyer's property will be auctioned.

Wang Chengfu revealed that although Nanjing's housing prices are currently experiencing stagflation, they have not fallen sharply. This is the most fundamental difference from Shenzhen. Since home buyers pay nearly 30% of the down payment when applying for a mortgage, banks will still not lose money unless housing prices in Nanjing fall by more than 30%.

Banks still have confidence in Nanjing’s property market. Some bankers said that banks have specialized agencies to evaluate Nanjing’s property market. A report issued by the agency believes that housing prices in the main urban area of ??Nanjing are unlikely to fall by 30%.

Explanation, after the house is auctioned, the shortfall must be made up

Zhu Xiaofei, director of the real estate department of Jiangsu Suyuan Law Firm, said that the bank will recover all the principal and interest of the loan in advance through litigation. , and confirm that the borrower has priority in repayment of the mortgaged property. After the lawsuit, if the borrower cannot repay the entire principal and interest of the loan, the bank will apply to the court for execution and then auction the mortgaged property of the borrower.

According to the law: If the price of the mortgaged property is lower than the value agreed upon when the mortgage right is created, or the price of the mortgaged property is reduced, auctioned or sold, the repayment shall be based on the realized value of the mortgaged property. The remaining portion that is not enough to be repaid shall be repaid by the debtor. That is to say, when the auction proceeds of the mortgaged house are insufficient to repay the entire principal, interest and related expenses of the loan, the bank has the right to continue to pursue repayment from the borrower.

For example, Ms. Chen bought a house for 1 million yuan in 2007. She paid 20% of the down payment, which is 200,000 yuan, and repaid another 50,000 yuan in installments. Now she is still 750,000 yuan short of the bank. . According to the current market price, the bank can only obtain 600,000 yuan after auctioning the house, which is not enough to repay the 750,000 yuan loan. Ms. Chen still needs to repay the remaining 150,000 yuan.

On the contrary, if the auction amount is higher than the loan repayment that the borrower should repay, the bank will return the balance to the borrower after deducting relevant costs and expenses.

Zhu Xiaofei, director of the real estate department of Jiangsu Suyuan Law Firm, reminded that banks can also apply for court enforcement against those who refuse to repay, such as by directly deducting wages, restricting consumption, etc., and intentionally hiding and transferring property, the court has the power to detain the borrower.

Extended reading, a 30% drop in housing prices is the critical point

After housing prices soared from the roller coaster, the result of the irrational rise must be a plunge. After the Shenzhen real estate market adjusted, housing prices dropped significantly. The latest research report from the Shenzhen Real Estate Research Center stated that in May this year, housing prices in Shenzhen dropped by 36% from the highest point last year. The critical point for personal mortgage risk is a 30% drop in house prices. Therefore, the personal mortgage risk of those who took over last year's high positions is worrying.

When housing prices in Shenzhen dropped by 30% from their peak at the end of 2007, Fengyu’s blog post "Shenzhen Bank Cuts Off Supply of Over RMB 100 Billion" attracted attention. At present, housing prices in Shenzhen continue to fall. Fengyu broke the news to reporters that the number of people in Shenzhen with negative mortgage equity exceeds 300,000.

At present, some owners have come forward one after another to say that they have become negative assets and have chosen to cut off the supply. The reporter learned that some of them are real housing demanders, but many are property speculators. When housing prices rose sharply last year, property speculators took over the "last step of beating the drum and spreading flowers" at a high position. Now faced with high monthly payments, some property speculators who can't afford it have no choice but to cut off the payment to reduce losses. Some homeowners told reporters that it would be cost-effective to buy a new home after the supply is cut off.

Relevant experts said that for property speculators, the falling housing prices have gradually swallowed up the assets in their hands. When the rent cannot be paid, cutting off the payment has become the choice of many property speculators; For owner-occupiers, the impact of falling house prices on them is actually very small, and cutting off the supply is really the last resort. After all, cutting off the loan will cause a series of problems, and personal credit will be stained.