The purchase price is lower than the loan

A wenzhou grassroots, vice President of the court said that from 2011 to now, the court seized houses at least 3000 API oil welded steel pipe sets, it is only a fraction of the auction.
Influenced by folk lending crisis of 2011, wenzhou judicial trust auction house number increased obviously.

A wenzhou district court, according to people familiar with the city's 2011 court trust auction 545, 986, 2012 to 622 in the first half of this year, including seventeen for real estate. A wenzhou district court, according to people familiar with the hospital trust auction number hydraulic equal tee pipe fitting this year is 3.2 times that of 2011 commissioned assessment for the whole year is expected to 420 or so, "and 80% for personal property, that doesn't include the enterprise bankruptcy involving real estate."

"Now, the auction for the housing price is lower than bank loans." Before the wenzhou district court, according to people familiar with the "upside down" is a rare houses, but more frequently over the past two years, after a lot of houses sold enough to repay bank loans. He says the housing mainly comes from bank charges, again after the announcement, ASTM A234 WPB Carbon Steel Equal Tee china producer prosecution and defense, and perform the judicial process, such as the fastest trust auction houses need six months.

A joint-stock bank wenzhou branch loan department head thinks, this "upside down" housing mainly appears in the lull before the high-end properties, such as such as Kyoto city, fragrance twips peninsula. Before firing to 50000 yuan/square meters of twip peninsula, now the price has dropped to 28000 yuan/square metre, surrounding a semifinished product opening price is 25000 yuan/square metre only. "If the high price to buy, it is now less than repay bank loans."

Wenzhou ding in real estate appraisal co., LTD., general manager of text: say, Lin yong from Lou generally real estate loans evaluating price is the price of around 8 fold, at seventy percent of the maximum mortgage, loans can be 56% of the housing price, now some homes prices are down by 40 to 50 percentage, means the housing price is lower than bank loans. So, some people who don't really have ability to repay the loan, will appear "room" phenomenon.

The Banks that pure "room" mortgage happen less and more appear in the "mortgage + guarantee loans" link. A market price of 5 million house, he says, the customer need a mortgage loan $5 million or more, so the customers to a third party as a guarantee, as to repay the loan by the year 5 million. Now the biggest problem is that the mortgaged property prices fall, the guarantor is not able to repay, in loans completely above the mortgaged property.