Zhengzhou woman with a monthly salary of 4,000 RMB sparks discussion by borrowing 14 million RMB to buy two houses.

A woman with a monthly salary of 4,000 yuan has made headlines on November 12 for taking out a loan of 14 million to buy two houses in Zhengzhou, Henan Province. This woman, named Mrs. Sun, who has been suffering from bipolar disorder for nearly 11 years, managed to secure a loan of 14 million yuan to purchase two properties, with a monthly repayment amount exceeding 70,000 yuan, far beyond her monthly income of 4,000 yuan. Surprisingly, the down payment for these two luxury homes was borrowed from a so-called “mysterious kind-hearted person.”

According to a report by Da Xiang News on November 12, Mrs. Sun traveled to Zhongzhou Future Tianyi alone in March 2024 to check out properties. At the sales office, she signed contracts for two properties with a “0 down payment” scheme – one priced over 9 million yuan, and the other over 7 million yuan, totaling 14 million yuan in loans. The identity of the mysterious “kind-hearted person” who provided the down payment remains undisclosed, with sales staff avoiding direct answers when asked about it.

Speculation arises that this peculiar real estate transaction may be linked to a shady “real estate grey industry chain.” The mysterious “kind-hearted person” is likely tied to a “professional lender” associated with the property developer.

The incident has sparked discussions online, with netizens questioning how someone with a 4,000-yuan income could qualify for a loan exceeding 10 million yuan. Some express skepticism, wondering how such a large sum of money could be lent out, insisting it is unattainable for the average person. Others sarcastically remark on the situation, highlighting the unusual circumstances surrounding the transaction.

Concerns have been raised about potential loopholes in the loan approval process at banks. It raises questions about how an individual with a modest income could secure such a substantial loan and the integrity of financial regulation.

In a blog post by “Old Zhao Social Talks,” the incident sheds light on three major issues in the current real estate market: lax credit risk control, the questionable approval process for a loan of 14 million yuan to a person with a 4,000-yuan income, and potential violations within the banking risk management systems. Such irregularities could not only burden property buyers with overwhelming debts but also fuel speculative activities in the real estate market.

The lack of protection for vulnerable groups is also highlighted in this case. As a person with a mental illness, the validity of the contracts signed by Mrs. Sun during a manic episode raises questions. Why weren’t mechanisms in place to identify and prevent such blatantly unreasonable property transactions?

This incident serves as a warning to the public. In a declining real estate market, some developers resort to extreme measures to boost sales for capital recovery. However, these practices not only jeopardize the rights of buyers but also escalate risks within the entire market.

A mainland Chinese lawyer suggested that if it can be proven that Mrs. Sun was in a manic state during the property purchase, the contract could be invalidated.