1) Pay The Arrears If The Bank Has Not Started The Auction Summons Process…

If the bank has not started the auction summons process, pay the arrears of the available installments.

If you can’t pay everything, pay and make sure the arrears are not more than two months. Why? Banks will usually start the suit process for arrears of three months or more.


This kind of debt they call a non-performing loan or NPL. They will take your case to court and the court can order the house to be auctioned off if you are unable to pay.


That is why it is important that your debt is not more than three months.


2) If You Have Been Sued For Auction, You Must Pay All Arrears

What if you’ve been sued? Can I pay and leave debts up to two months in arrears?

I want to give an example to make it easy to understand.


Let’s say your monthly house payment is RM1000. And you haven’t paid for five months. The amount is RM5000.


Can you pay RM3000 and leave another RM2000 (2 months) as arrears?


The answer is no. If the bank has sued and the court orders for the house to be auctioned, you have to pay all the arrears.


3) How Do You Pay If You Are Stuck? Use The EPF

Many do not know, if you have a problem paying home debt, you can use your EPF Account 2 to clear the debt.


The EPF allows you to make withdrawals for the following purposes:


  • Home monthly installment payment
  • Payments reduce the loan balance
  • For those of you who have a permanent job, God willing, this way you can save your house from being auctioned off. 

Yup, you could use EPF to do so. 


4) Ask for AKPK’s advice

You can also meet with AKPK officers for advice. The reason for this is they may be able to help you negotiate with the bank new payment terms. This may lower your monthly payments to the bank.


5) Fix Finances By Selling The House

If you can’t afford to pay for the house anymore, just sell the house.


That way you can get your finances in order.


Avoid staying with that house if you can’t afford it. Some do not want to sell because of sentimental value and may feel shy.


For me the most important thing is that you save your finances. Another question number two. Put everything aside okay. 


6) Negotiate With The Bank

If the bank has not started the process of your home auction suit, you can negotiate with them to get a time period for you to clear the arrears.


During the negotiation, tell how you want to clear the debt. Whether you want to sell a house or use other means.


If you want to sell a house, get the estimated duration of the correct home sales process and tell the bank. Do not keep quiet! They are usually flexible if you consult with them. Get to know more with real time crypto news.