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Leaving Hong Kong Without Paying Mortgage

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  1. #1

    Leaving Hong Kong Without Paying Mortgage

    Hi all,

    I have a hypothetical situation. At the moment I have a mortgage in HK for a property purchased a year and a half ago. With the political and geopolitical situation being what it is, and a couple of small kids, I am considering I may need to leave HK at some point, perhaps in a hurry. This is not something I am planning or want to do in the next 5 years, but it is in the realm of possibilities. With the direction of the market, I will likely be "under water" soon. If I were to leave HK abruptly and not pay my mortgage, the bank would likely foreclose, and also very likely not be able to liquidate the flat without a loss. Are debt collectors likely to chase after me in my home country in such circumstances? What would be the "best" way to handle such sticky situation?

    I do want to emphasise this is not something I am planning to do or want to do. I am just trying to prepare for the worse case scenario.

    Thanks,
    Fool

    Rob2020 likes this.

  2. #2

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    Would renting the unit out cover the mortgage?


  3. #3

    Interesting idea. Unfortunately it's unlikely the rent would cover the mortgage. We got the unit on the cheap cuz it was a "haunted house", our mortgage was 85%. Likely we would still lose some money every month... We would also need someone on the ground to deal with repairs and other issues that may come up.


  4. #4

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    For maintenance and other issues - these are not that bad if your appliances and building are in reasonable condition. Have a friend or relative who can help?

    At the end of the day, the last thing a bank wants is to deal with a foreclosure... Esp if the apartment is not going to bring top dollar at an auction due to the spirits squatting in the apt.

    Would also want to watch out for the 3 year rule on stamp duty that will take a chunk out if I am not mistaken. Don't know if it applies to foreclosed flats.

    I would focus on not-worst case scenarios to see how you can get away without losing your flat or whatever equity you have put into it .

    Mrs. Jones likes this.

  5. #5

    Thanks, I may have been reading a little too much news this weekend and getting overly paranoid about the situation in HK/China.

    shri likes this.

  6. #6

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    Quote Originally Posted by fuzzzrite:
    Thanks, I may have been reading a little too much news this weekend and getting overly paranoid about the situation in HK/China.
    We do have some precedent here withf banks suspending mortgage payments when things got bad during covid.
    Last edited by shri; 23-10-2022 at 11:55 AM.

  7. #7

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    When you say your mortgage was 85% I assume you mean you put down 15% of your money and the bank loaned you the other 85%? Not that you are paying an interest rate of 85%. Correct?


  8. #8

    Correct, we put down 15%.


  9. #9

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    Original Post Deleted
    Didn't want to assume

  10. #10

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    Original Post Deleted
    He bought it with his Credit Card.
    jgl and Rob2020 like this.

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