A total of 1,350 HDB flats have to be returned to HDB since 2005 following the failure of the owners to service their mortgage installments.

In fact, currently there are around 6,500 families in arrears of between two to four years.

Last year, HDB officials have had more than 60,000 visits to the units of those that failed to pay and conducted more than 35,000 interview sessions and counselling for the said problem.

Therefore, house owners which are in arrears are advise to meet up with HDB immediately, urged the Parliamentary Secretary (National Development), Dr. Mohamad Maliki Osman.

Dr. Maliki said that those affected should not delay in seeking help so that the problem does not become worse.

"We understand their predicament and are concerned because this situation depends on how long the recession will last," said Dr Maliki when being interviewed in his office by Berita Harian recently.

"If they are able to justify the problems faced, for instance, unemployment, this issue can be resolved".

"The challenge is if the difficulty they face is long termed, they will be having bigger problems, like negative equity," said Dr Maliki.

Negative equity is the situation where the valuation of the flat is lower than the mortgage that was took out on the property.

If the owner sells the flat in negative equity, they will still be left in the problem of owing HDB.

What is of more concern is when the affected group kept quiet and refused to negotiate with HDB on the way to settle the mortgate, and subsequently served the Compulsory Acquisition (CA) - marking their flats for repossession.

Berita Harian was informed that if the owner was served the CA, they might be given a notice period of one month only to move out. The owner would also have to bear additional cost, including lawyer charges.

Valuation on the affected property will be made and HDB will compensate the owner up to 90 percent of the property.

To prevent this, Dr Maliki said that a few steps can be taken.

Firstly, the owner can appeal to HDB to reduce the monthly installment temporarily, at the same time, preventing the property from being sold-off or reposessed.

Secondly, the husband and wife needs to be committed to find jobs that can sustain the increasing household expenses.

Thirdly, if they need to sell the property, or of it was reposessed, they should arrange with their immediate family for a place to stay temporarily, until they find a smaller flat to move in to.

"The most important message here is that as a house owner, one should be prudent in planning the purchase in accordance to one's ability"

"We are organizing buying and selling seminars, and ensuring that our housing agents are qualified and trained, so that buyers are well advised," said Dr Maliki.