Authors Xu Qianyi, Yang Xi

In the context of regulation and control of the real estate industry, the higher house prices in some areas have been nearly “halved”. At the beginning of this year, a “self-report of those who cut off supply in Yanjiao” made the problem of “cut off supply” of housing loans enter the public view. After house prices fell, home buyers “lost” the mortgage interest and lost the principal, “cut off supply” is really an option?

Wu Xin (a pseudonym), a buyer in Tianjin, told reporters about her mental journey. In 2016, Wu Xin hurried to get on the bus under the threat of the hot house purchase situation, but after a roller coaster of house prices in Tianjin, she fell into a dilemma of “selling or not selling”. For whether to consider the issue of “supply interruption”, Wu Xin said that if house prices continue to fall in the future, this option will not be ruled out.

In fact, the “disconnection” of customers is also a trouble for banks. Regardless of the processes of collection and prosecution, once the house price falls below the credit cost, it also needs to report the loss for write off.

Dai Jinhua, the founder lawyer of Beijing jinv law firm, told reporters that according to the law, the starting price of the legal auction house shall not be lower than the evaluation price or 70% of the market price. Generally, the starting price of the court’s first auction is set at 70% - 80% according to the market situation, that is, 70% or 20% discount. If the auction fails, the starting price of the second auction will be lower.

Dai Jinhua suggested that if buyers encounter special circumstances and are really unable to repay the loan on schedule, they can choose to communicate with the bank and apply for an extension of the loan repayment to alleviate the financial pressure.

A floating loss of 400000 yuan in six years after purchase

Wu Xin told reporters about her journey of buying a house.

From 2015 to 2016, Wu Xin and her family wanted to buy a house just because they needed it. Originally, they wanted to fix a house before and after the Spring Festival in 2016, but just about to fix a house, the owner reneged and directly increased the price by 150000, and Wu Xin gave up.

Subsequently, the house price trend in Tianjin was unexpected to Wu Xin. Seeing that her favorite house type rose all the way from about 900000 in September 2015, she was anxious. Finally, in July 2016, she hurried to buy a set of two bedrooms and one living room in Kunyu Xinyuan with her own funds and bank loans totaling 1.3 million.

Later, the house price of the same family in the community rose all the way, and the highest point rose to more than 2.1 million. Wu Xin and her family felt lucky at that time. Unexpectedly, since then, the house price in Tianjin has plummeted. In the past six years, the house price of the same family in the community has been “halved” compared with the highest point. Now, the recent transaction price of the house of the same family in the same community purchased by Wu Xin is only 1.13 million, which is 13% lower than the purchase price of Wu Xin at that time.

At present, Wu Xin is in a dilemma. In her words, “if you sell, you will lose money; if you don’t sell, you will lose more.”. And it can’t be sold without reducing the price at present. Wu Xin calculated an account. In six years, she paid off about 300000 house loans, of which 100000 was the principal and 200000 was the interest. If you sell your house now, interest and house prices will fall, which is equivalent to a loss of nearly 400000. If not, Wu Xin is actually facing the demand for improvement.

There is something more painful than Wu Xin’s experience. She said the homeowner who sold her house was suspected to have “cut off the supply”. Wu Xin learned that after selling her house in 2016, the homeowner bought a small villa in Dongli District, Tianjin. However, around 2021, a lawsuit summons from the bank was sent to Wu Xin’s house address. The homeowner was suspected of “breaking the supply”, but Wu Xin did not understand the reason for the “breaking the supply”.

For whether the issue of “cut-off” has been considered, Wu Xin said that if house prices continue to fall in the future, this option will not be ruled out, but it is necessary to comprehensively evaluate which option will lose less money.

Throw the pot to the “dishonest” list at the bank meeting

In the period of rising house prices, the issue of “supply interruption” is less concerned, but when house prices fall sharply, “supply interruption” becomes a market behavior and is no longer rare. At the beginning of this year, a “self statement of Yanjiao donors” was swiped on social media.

The “donor” said that he replaced a 140 square meter three bedroom in Yanjiao in 2017, with a total price of 4.26 million, a loan of 2.98 million, a monthly payment of 16800 yuan, and a total repayment amount of 806400 yuan. However, due to their own and the general environment, they can’t afford the mortgage now.

The “supplier” calculated that the current market price of the house is about 2.35 million to 2.4 million yuan. If you sell the house, you will not only lose the down payment and 800000 yuan of monthly supply, but also need to find 400000 yuan from the bank. If the supply is cut off and the house is not used, it seems more cost-effective.

But what he didn’t expect was that the bank took him to court. Of course, he lost the lawsuit. The consequence is that he has to bear additional interest and penalty interest of 49900 yuan, case acceptance fee of 15400 yuan, preservation fee of 5000 yuan, prosecution lawyer fee entrusted by the Bank of 122600 yuan and other expenses. In addition, it will be on the list of dishonest people.

“Those who cut off the supply” finally advised everyone: “you must do what you can to buy a house. If you want to dump it to the bank, it’s impossible.” If you buy it, don’t have the idea of cutting off the supply. “Don’t be impulsive. You have to pay it back if you smash the pot and sell iron.”

The self statement of the “donor” is only an epitome of the changes in house prices in Yanjiao. Yanjiao belongs to Sanhe City, one of the three counties in Hebei Province. Relatively speaking, the transportation is relatively convenient, and the previous policies are relatively loose. There is the vision of “unified planning of Tongzhou and the three northern counties”, which once became the first choice for young people who “drift North”. Market data show that from 2015 to the beginning of 2017, the house price in Yanjiao rose rapidly from 10000 / Ping to more than 30000 / Ping.

Recently, the reporter randomly queried the historical transaction prices of some communities in Yanjiao on the intermediary platform and found that the high point of house prices in Yanjiao was about April 2017. At that time, the transaction price of two rooms and one living room in a community was as high as 31000 / Ping, and there were many transaction data. From January to April 2022, only four similar units of the community were sold on the platform, and the price decreased from 14000 / ping in January to 13000 / Ping.

“Cut off supply” does not mean that it can be cut off if you want to

So is the “cut-off” a “cut-off”? How long will banks usually initiate litigation after “disconnection”?

A bank credit manager told reporters that his bank generally collects overdue customers of housing loans first. If they are overdue for six months or unpaid for three consecutive months, they will file a lawsuit. After the disposal of the house, the part that is less than the principal of the bank loan will be reported for loss write off.

In this regard, Zhao Zhonghua, a lawyer of Beijing Yinghe law firm, said that the buyer and the developer