I have repeatedly told you that many middle-class families in Beijing, Shanghai, Guangzhou and Shenzhen are now essentially bankrupt.
In 2021, a house worth 10 million yuan, with a down payment of 3 million yuan and a loan of 7 million yuan, is now worth less than 7 million yuan.
This not only means that you have lost 3 million yuan in three years, but also means that the house has no asset value for you and is a liability in the pure sense.
In other words, you are officially bankrupt.
(The above calculations do not take into account interest)
So recently many cities in China have introduced laws that if a family property has entered the stage of defaulting on payments, banks are not allowed to recover + auction the house.
The previous practice was that the court took back your 7 million yuan house and auctioned it, and the auction recovered 6.5 million yuan in cash, so you still had a debt of 500,000 yuan and needed to pay 500,000 yuan in cash to the bank;
The current situation is that because the number of defaulters has increased sharply and the number of unemployed people has skyrocketed, the bank has begun to coax the baby and dare not use the court process. Anyway, it is useless to sue.
Now many domestic banks are taking advantage of low interest rates to directly help you refinance, allowing you to pay only 1/3~1/5 of the monthly payment. You can pay it back if you have money, and it doesn’t matter if you don’t have money. Anyway, it will be delayed.
As long as you don’t go bankrupt, the bank will not force you, and the bank’s assets will not lose money.
So even if the market has completely collapsed and the courts are ready to fight, the bank actually starts to act like a grandson and starts to push you to the limit. In the past, refinancing was difficult during the high interest rate period, but now the bank can do it for you directly.
It reminds me of a classic quote from "The Ming Dynasty 1566":
"Some things, if you don't weigh them, you won't get four ounces, but if you weigh them, you won't get a thousand pounds."