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Housing Market: Mortgage Defaults and Foreclosures on the Rise

China Securities reported that, since the beginning of 2014, people have been defaulting on high-end real estate loans or have simply abandoned their property. Some bank staff members have said that they no longer make housing loans. Real estate auction announcements frequently appear on the homepage of major auction websites. It will take a couple of years for banks to auction off their foreclosed properties. Few banks are interested in offering low interest loans; they prefer to keep the interest rate at 10 percent or above. However, some investment professionals indicated that those who are willing to pay 10 percent interest for loans are more likely to default. Typically, they have secured emigrant status and bought properties overseas. They are the high risk groups for defaults on loans. 

Source: China Securities reprinted by Xinua, May 15, 2014