What happens when a loan is more than the price of foreclosed house?

Developers have been using an overall headline price in the sale and purchase agreement (SPA) as opposed to the real price.

StarBizWeek posed a real case scenario to CIMB Group as to what happens when the loan amount disbursed by the bank is larger than the actual price of the house, and the house is under foreclosure.

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Monthly Plan

RM 13.90/month

RM 9.73/month

Billed as RM 9.73 for the 1st month, RM 13.90 thereafter.

Best Value

Annual Plan

RM 12.33/month

RM 8.63/month

Billed as RM 103.60 for the 1st year, RM 148 thereafter.

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Housing and Local Government Ministry , residential property development , Housing Loan ,

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