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Many home buyers are insolvent

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Ho Chi Minh CityFor 2 months now, Mr. Nguyen has been sitting on fire because of late payment of 400 million VND in the 3rd phase of apartments in Thu Duc, the risk of contract cancellation of billions.

Anh Nguyen, an investor in Ho Chi Minh City, said that he ordered a 2-bedroom luxury apartment in Thu Duc district from 2020 because the apartment under construction is located near major roads, close to schools, markets, hospitals, etc. convenient for the family’s life, which is familiar with the East area of ​​Ho Chi Minh City. By the end of April this year, Mr. Nguyen has paid the first and second installments, totaling more than one billion VND according to the project progress.

The third payment, the amount to be paid to the investor is more than 400 million VND, the first notice letter was sent from the beginning of June, the debt collection reminder letter was also sent for the second and third time from the beginning of July and August. However, at present, he still has not gathered enough money because the epidemic season to collect debt from partners or borrow money is empty.

This investor confided that the fourth outbreak of the epidemic left unexpected consequences, causing the capital flow from his business partner to be blocked. Due to the prolonged blockade and distance, the working cash flow from Mr. Nguyen’s business also suffered a serious loss. “Currently I am unable to pay according to the schedule. According to the contract, if I pay late, I will lose hundreds of millions of dong in fines and liquidation of the contract. I have submitted an application to delay the payment schedule, I hope the owner invest in debt freezing,” Nguyen confided.

Also falling into insolvency, Ms. Thy, a small trader living in District 9, Ho Chi Minh City, who has stopped selling since June until now because her house is located in a blockade area, said that she couldn’t sit still because her owner was in trouble. Investment warning late payment of house 2 installments. Ms. Thy bought a 2-bedroom apartment in Binh Duong for 1.8 billion dong, paid 50% of the contract value. However, in two consecutive payments in May and July, she was unable to pay because she could not wholesale anything due to the complicated development of the epidemic.

This investor admitted that the investor sent the subpoenas, so he called to ask for an extension of the payment schedule because the epidemic made the economy difficult. However, the investor’s accountant reminds us that the first payment in September is coming soon, the debt must be paid in at least one installment in 3 installments. “They threatened that if the payment was late in the next week, they would announce the liquidation of the contract, the fine of up to hundreds of millions of dong,” Ms. Thy confided.

Real estate market in Thu Duc City. Photo: Quynh Tran

The director of the sales department of a real estate company based in Binh Thanh district said that since the beginning of the fourth epidemic until now, up to 50% of the company’s customers who buy real estate have responded that they are incapacitated. Payment-in-progress. Due to the blockade of Ho Chi Minh City and many southern provinces and cities to prevent the epidemic, trading, wholesale and business activities have been restricted for many months, causing the cash flow of real estate buyers to be interrupted.

The leader of a real estate company in Binh Thanh admitted that out of 50% of the company’s insolvent customers, up to 80% buy houses and land for investment to pay according to the project progress from the family’s working cash flow. family. When they are insolvent, most customers ask for a debt freeze, delay payment until the epidemic is under control. In many cases, customers actively liquidated contracts, accepted penalties, and offset brokerage costs because of concerns that the epidemic would continue, and their incomes would not be able to reach the same destination as the project.

Exchange with VnExpressMr. Nguyen Loc Hanh, General Director of Ngoc Asia Real Estate Investment Joint Stock Company, confirmed that from June to now, the primary real estate market is seeing a wave of investors and customers who have lost their lives. ability to pay house rent according to the progress of projects. In addition, the liquidity of the whole market is decelerating sharply, making the opportunity to exit goods to handle finance for insolvent investors become deadlocked.

Hanh analyzed, this wave of insolvency shows that real estate investors are facing more challenges than in previous epidemics. The links of the market have been shaking violently in the past few months. On the market, there are 3 groups of solutions for insolvency of real estate investors.

In the first group, the investor allows customers to freeze debts, pay late, and pay interest. The second group still collects debt and threatens to liquidate the contract, if the customer is insolvent for too long, he may be fined for contract liquidation, in some cases the penalty is up to 20-30% of the contract value. The third group, investors resell real estate on the secondary market, when the new cash flow is recovered, customers can get their money back, minus brokerage fees. Regardless of the group, prospective homebuyers also suffer if they become insolvent, but groups two and three are the hardest hit.

According to Mr. Hanh, currently, most deposit contracts and sales contracts do not have a force majeure clause that is epidemic, so cash flow difficulties, customers’ inability to pay during the quarantine period, The past blockade will not be prioritized into the immediate refund group. On the other hand, the epidemic also makes investors “thirsty” for cash because sales have been stopped for many months and will likely be delayed for a few more months. Therefore, investors are also not willing to cash back to customers.

CEO Ngoc Asia said that the most reasonable solution for the situation where customers are insolvent due to the recent epidemic is to allow homebuyers to freeze debts without incurring penalties. If investors can do this, the business will suffer short-term cash flow losses, but in return, long-term customer engagement will be more positive. In addition, the policy of flexibly extending the payment schedule during the epidemic season also prevented the wave of massive divestment out of control.

Trung Tin

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