(exclusive media report) Mainland China Evergrande reported financial difficulties last year. After the transfer of its new property in Hong Kong, “Evergrande Ruifeng”, there was a mortgage problem. About 30 buyers applied for 90% of the mortgage “Breathing Plan”, which became 80% of the mortgage. Need to pay an extra 10% to attend the meeting. The ADPL held a press conference with 30 proprietors today. Some proponents said at the meeting that the developer violated the Trade Description Ordinance and collective fraud, while others cried out that they were worried that the transaction might not be completed, and that they would be charged for the price difference and interest. The feeling of wanting to die but not daring to die.”
Evergrande uses 90% mortgage as a solicitation to transfer and becomes 80%
In 2019, China Evergrande purchased the site of the former Huaide Industrial Building in Changsha Wan of New World Development, and developed it into a “Evergrande Ruifeng” project. At the time of sales, the 90% mortgage plan of “guaranteed loan” and “interest-free and mortgage-free for the first two years” is used as a solicitation. The interest rate is 2.5% for the third year and 3% for the fourth year.
“Evergrande Ruifeng” real estate, now renamed “Ruifeng”
Evergrande came out with news of financial difficulties and sold all the property rights to Dingpei Group, and Dingpei changed the property to “Ruifeng”. The original key date was also postponed by at least half a year from October last year. Some buyers were unable to apply for the original 90% mortgage plan and found that the plan did not exist at all.
In February this year, the financial company Chuangying changed the terms of the 90% mortgage plan. Although the first year is interest-free, the repayment needs to be amortized over 30 years, and the payment does not exceed 70% of the income. However, another owner failed to apply for the above-mentioned mortgage plan. Ding Pei suggested that the owner apply for a mortgage from “Hong Kong Financial Capital Group Co., Ltd.”, providing a mortgage plan of 10% mortgage and 20% mortgage.
The bitter master denounces the developer for violating the product description and deliberately deceiving
Ms. Chen, the bitter owner, pointed out that when Evergrande proposed the 90% mortgage plan, it used words such as “no one in the past, no one in the future”. As a real estate agent, she was suspicious of the developer. “. However, she said that at that time, she had repeatedly confirmed with the company supervisor and the person in charge of the developer, and then visited the demonstration unit in person to inquire with the staff of the developer who was stationed at the site. The staff even calculated the mortgage-to-value ratio for her in person. Ms. Chen described that during the entire calculation process, the staff were very relaxed and simple, and she called it “Breathing Plan, as long as you have breath, I will lend it to you.” She went on to point out that the Internet and the media are flooded with advertisements and reports regarding mortgage plans for real estate projects, so I believe there is a real plan.
Ms. Chen said that following Dingpei Group took over completely, it pushed past commitments completely, questioning the joint venture between the developer and the financial company Chuangying, and misleading buyers.
Another bitter owner, Mr. Du, questioned that the developer would no longer provide a 90% mortgage plan, which he considered to be a violation of the Trade Descriptions Ordinance. Regarding the second press plan, he worries that “it will be difficult to do the second press and later transfer the press”. He said that as far as he knows, there are regarding 30 buyers who have not yet applied for a mortgage.
Ms. Chen clearly stated that if she did not get 90% of the mortgage, she would have to pay an additional 10% down payment, which is regarding 700,000 to 800,000 yuan, and she might not afford it. She said that in February this year, a group of people who were suffering contacted 10 government departments and 12 parliamentarians, but the replies they received were not satisfactory. Among them, the customs even said that “buildings are not commodities”. Miss Chen reluctantly pointed out that the buyer pays a stamp duty, but the government has no provisions to protect the seller, “Why do you charge an expensive stamp duty?”
The sufferer was oppressed and cried “every day I feel like I want to die, but I don’t dare to die”
Another bitter owner, Ms. Xu, who failed to apply for 90% of the mortgage, worried that she might not complete the transaction or be charged for the difference and interest. When she mentioned that a buyer had hoped to “solve” the problem by suicide, she mightn’t help crying, “It’s a matter of time, why don’t you ask the finance company to borrow it, or ask a friend to borrow it, can anyone ask me to be my guarantor? , I’m responsible for thinking regarding this every day, I can’t sleep, I need to take sleeping pills, I feel like I want to die every day, but I don’t dare to die.”
Tan Tak-shing, chairman of the Sham Shui Po District Council of the ADPL, believes that developers are now refraining from talking regarding the 90% mortgage they had promised, which is suspected to be fraudulent, and urged developers to allow buyers to terminate the contract. Li Tingfeng, vice-chairman of the ADPL, questioned that the current sales regulations have a gray area, and the government’s incompetence in supervision has caused serious losses to ordinary citizens.
The developer said last month that Ruifeng had been approved for a letter of satisfaction, and is expected to send a letter within this month to notify the buyer to repossess the building.
