Mortgage Repayments

[casamarina]

This story concerns an outstanding mortgage belonging to a Thai family,

owed to a Thai cooperative organization.

The father, who took the mortgage out, died 5 years ago and his wife

inherited everything from him but has since not made any repayments.

It is understood that the outstanding amount owed on the mortgage is in

the region of 600,000 baht.

The cooperative has approached the mother asking her to sign a

declaration to repay the loan in monthly installments. She does not want

to do this and instead has offered the cooperative the land in return

which has a value of approximately 1,200,000 baht.

So far the cooperative have refused to take their land and have instead

setup a repayment plan. They insist they want the loan repayed with cash

payments every month.

Please could you tell me Where they stand in the Thai law ?

Can a mortgage loan can be arbitrarily changed into a personal loan ?

If this is the case, can the daughter be held responsible for the loan

repayments ?

Any advice appreciated

[GuestHouse]

The way I look at it is the Mortgage has not been paid, against what I presume was an existing and agreed schedule of payments.

The mortgage company are now offering new terms to the family who are already in breach of the orignal mortgage terms.

This seems very reasonable to me. My guess is the lender would be perfectly within their rights to bring a court action, eviction, and seazure of assets to cover the unpaid debt.

I can't see any reason why the lender would accept a piece of land in return, if the land is worth twice the debt, let the debtor sell the land and pay off the debt.

Nor do I see that the daughter or anyone else could be compelled to pay.

If the lender has the mind to take a court action then the the options seem simple to me. Pay or risk loosing the house in a court action, and if that happens hope that the court can sell the house for enough to cover the debt, if not the family will loose their house and have a residual debt.

I've not of course considered the Farang Pay option...

Edited January 31, 2007 by GuestHouse

[think_too_mut]

I've not of course considered the Farang Pay option...

Good post, Guesthouse.

I'm inclined to say - "Farang pays".