With the acceleration of urbanization, high-rise buildings are erected all over my country. Against this background, housing prices in various places have also soared.

Seeing the rise in housing prices, both investors and the general public can no longer sit still, and everyone's enthusiasm for buying houses has been raised to the maximum.

However, in the past two years, we have discovered that the situation has reversed. With the debt crises of major real estate companies breaking out one after another, we have seen clearly that the real estate industry is not as glamorous as we imagined.

As companies’ funds cannot be recovered quickly and there is insufficient liquidity to ensure the normal operation of projects, unfinished buildings have appeared in many areas.

Homebuyers cannot obtain the property during the contract period, but during this period you must bear the mortgage, which makes everyone wonder: Why can developers abandon the project when they run out of money, but ordinary people cannot stop paying when they can’t pay?

1. Current real estate market

The emergence of real estate speculation many years ago accelerated the development of this industry, and buying a house became one of the most popular financial investment methods at that time.

A family's assets, in addition to the amount of fixed deposits, also need to be considered whether the family owns real estate, cars, jewelry, etc., which are all considered fixed assets.

As the price of houses continues to rise, their value has also increased several times, especially in first-tier cities where housing prices are ridiculously high. But even so, it is still difficult to find a house in the market.

The reason for this phenomenon is that with the rapid economic growth, everyone's income has increased. At this time, everyone certainly hopes to accumulate their assets, and buying a house becomes the best choice.

The second reason is that since some time ago, real estate has become a standard for many young couples when they get married. Many ordinary families have to take out their life savings and pay the down payment before they have to face high mortgage loans.

After the outbreak of the epidemic, everyone found that the pressure of mortgage loans was too great. Some people faced the risk of salary cuts and layoffs during this period, and their income was no longer guaranteed. Paying mortgage loans became the most troublesome thing.

After the full opening up, it was originally thought that the economy would enter a stage of rapid recovery. However, the reality was just the opposite, because everyone was out of money at this time, so the country formulated a number of policy adjustments.

If you observe carefully, you will find that the country has implemented the most new policies in the real estate industry, such as lowering the down payment ratio, looking at the house instead of the loan, and now the bank's interest rate has also dropped, which is unfair to previous home buyers.

One netizen said that he had just bought a house two years ago. According to the current market conditions and prices, he lost more than 100,000 yuan on the house in just a few years, and he is still paying off the mortgage.

The downturn in the real estate industry has filled the market with too much uncertainty. Coupled with the fact that the Ministry of Housing has repeatedly emphasized the concept of not speculating in housing, many speculators are now leaving the market.

Even people with urgent needs or real estate companies have slowed down their development pace. Everyone is in a wait-and-see phase, which has led to a rapid decline in real estate transaction volumes in various regions.

After the country's macro-control, credit funds have shrunk, which has also brought pressure to real estate companies. The follow-up funds for the project may not keep up.

During the period of booming real estate market, many companies continued to expand their development projects, which led to the situation getting out of control when a crisis occurred.

Today's real estate developers are facing multiple relationships of creditor's rights and debts, and the market transaction volume is not high. Real estate developers have many properties in their hands, but they are unable to sell them. The broken capital chain has forced them to suspend construction.

The situation of unfinished projects is becoming more and more serious. This is an unhealthy phenomenon in the development of the real estate market. It affects the reputation of real estate companies and makes it impossible to guarantee the rights and interests of home buyers.

2. Why can’t ordinary people stop paying their mortgages?

If the house had been completed on schedule, everyone could move into the new house, which would have improved everyone's quality of life.

However, after the project is left unfinished, no one can guarantee how long the construction period will be delayed.

Homebuyers need to repay their mortgages on time every month, but the house becomes less and less valuable as time goes by, and it may take a long time for it to be completed. There are also risks to the quality and safety of the house.

This is undoubtedly a heavy blow to ordinary families, as the economic environment has been sluggish in the past two years.

Now people cannot live in a new house and still have to pay off the mortgage, and may even have to face high rents, which makes many people's expectations for life lower and lower.

Nowadays, most people have various loans, such as car loans, mortgages, credit cards and other commercial loans. If they fail to repay the due date, they will be bombarded with various phone calls and text messages from the bank.

After everyone found out that the houses were unfinished, the most anxious ones were the home buyers. Everyone tried to protect their rights but to no avail. The developer was avoiding responsibility everywhere, but no one blamed the bank.

We must understand that developers will apply for various loans from banks in the early stages of construction.

If a project fails, it means that the initial investment costs cannot be recovered and the developer also owes the bank a huge loan.

Generally speaking, the developers’ development funds come from bank loans and pre-sale funds. If the houses cannot be sold, the developers really have no money.

No matter how the bank urges payment, it is of no avail, so the bank has no way to deal with the developer.

In the end, it is the home buyers who suffer. If you study the mortgage contract carefully, you will find that this contract is a loan contract signed between the home buyer and the bank.

It also clearly stipulates that regardless of whether the developer can deliver the house on time, everyone needs to repay the loan in accordance with the regulations.

So even if the problem lies with the developer, consumers still need to bear the responsibility of repayment.

It seems that consumers have become the final bearers of market risks. Both banks and real estate developers have transferred the risks. Once you fail to repay your mortgage on time, it may affect your credit rating.

This is mainly because the home loan we apply for is a mortgage loan. After this contract is formed, the house has become a collateral, so the buyer must repay the loan on time according to the contract, otherwise the bank has the right to take legal measures to recover it.

Moreover, everyone has already paid back part of the loan after buying a house. If they suddenly stop paying in the middle, all previous investments may be lost. This is also one of the reasons why we cannot stop updating.

For home buyers, if a house is unfinished, everyone will suffer certain losses, but they must not stop paying the mortgage easily. If they do so, they may suffer greater losses.

This seemingly unfair rule has also caused dissatisfaction among many home buyers.

Faced with this situation, some regions have introduced relevant regulations. If a house is under construction or unfinished, the buyer can apply to the bank to stop repaying the loan.

Please note that it is a suspension of loan repayment, not non-repayment. The term is only until the construction of the house begins. Once someone takes over the unfinished building, you will need to continue repaying the loan.

Never stop paying the mortgage directly, otherwise you will need to bear the corresponding legal responsibility.

A similar incident happened before, where a buyer bought a house that was unfinished, and he stopped paying the mortgage in anger.

Unexpectedly, a year later the bank filed a lawsuit directly in court, and all the property under the other party's name was frozen.

If you stop paying the mortgage rashly, the bank will auction the unfinished house, and its price will definitely be lower than the market price.

All the money raised from the auction will be used to repay the loan that the home buyer has taken from the bank. If the money is not enough, the relevant debt will still exist.

In other words, if you stop paying the mortgage privately, you may end up losing the house, owing the bank a huge debt, and even having to bear the litigation costs of losing the case. This is not worth it for us.

How should homebuyers respond?

Buying a house has always been a big deal for the Chinese people. It represents not only a home, but also another form of family assets.

For real estate developers, a house may just be a valuable commodity, but for home buyers, it has higher value and significance, which is why everyone attaches so much importance to the house.

The phenomenon of unfinished projects is common everywhere. This is affected by the market environment. Of course, it also has a lot to do with the blind expansion of real estate companies. If you buy a house and encounter an unfinished project, you must use reasonable and correct methods to protect your rights.

We can negotiate with the developer and ask him to provide reasonable solutions, such as extending the delivery time or giving more discounts on the price, which can also be regarded as a form of economic compensation.

After communicating with the developer, you can apply to the local relevant department to stop repaying the mortgage. Everything must be done in accordance with formal procedures and formalities to better protect your rights and interests.

If the negotiation terms cannot be agreed upon with the developer, the buyer can apply for arbitration or sue, and the court will also conduct an investigation and make a judgment based on the actual situation.

When we stop paying the loan, we have to explain to the bank that the developer is responsible for not being able to deliver the house on time, which led to the suspension of payment.

When buying a house, you must choose a developer with good reputation and high credibility, and understand the construction and sales of the project.

In order to avoid buying unfinished properties, everyone should conduct sufficient market research in advance and learn more about the relevant policies, laws and regulations in this regard.

Summarize

A house carries too much for a family. Once a house is left unfinished, the buyer will not only face financial losses, but also huge physical and mental harm, which may even affect family relationships.

It is hoped that the relevant departments can strengthen supervision over developers and introduce more relevant policies and regulations under special circumstances, so as to better avoid conflicts and losses between developers, banks and home buyers.

Unfinished housing projects do exist, and the country is doing its best to make up for it and save the market.

In the past two years, driven by various policies, unfinished buildings have shown signs of recovery. We must have confidence in the country.