Can’t get a mortgage for a haunted house?
Most people avoid haunted houses, but there are also those who fear nothing except not being able to purchase a property within their budget, even if it happens to be a haunted house. While some people have no qualms about buying such a property, the impact it can have on applying for a high percentage mortgage should not be ignored.
– Does the law that affects mortgages rely on human factors?
The truth is, haunted houses themselves do not affect mortgage applications. Rather, it’s the psychological effect and the resulting chain reaction that causes problems.
Haunted houses are defined as properties where unnatural deaths, such as suicides or murders, have occurred, even if the victim was not the owner or tenant. In traditional Chinese society, where death is considered taboo, banks use internal data and news reports to “reduce the price” of such properties.
Similar to how a store automatically reduces the price of damaged goods, owners of haunted houses may compromise due to the belief that the property is hard to sell, has a heavy negative energy, and is unfit for living.
Therefore, due to the herd mentality, adjacent or neighboring units on the same floor or building will also be sold at low prices in a panic.
As a result, the overall valuation of the floor, building, or even the area recorded by the bank is lower. Even if a few owners refuse to lower their prices, it will not help the situation.
In addition to affecting the owners of the haunted house, this psychological battle also impacts potential buyers who see the property as an opportunity to purchase below market value.
Due to the low valuation of the “haunted house area” and extensive media coverage, even haunted houses where relatively minor accidents have occurred can still be approved for 50-60% mortgages. However, the more sensational the case, the more difficult it is to apply for a mortgage, and even resulting in a failed application.
Before taking action, it is recommended that potential buyers do their homework, such as seeking advice from an accountant, reviewing the transaction history of the unit, and whether it has changed hands multiple times, to understand the factors that can affect mortgage applications.
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