Not paying a loan.. what can the Bank do?

[Huayrat]

If a Thai National does not pay the loan then loses the land guaranteed against the loan but still owes more what happens??

They don't work and have no income.. Does the bank take the loss ??

[marko kok prong]

Crushed like an ant,most probably.

[Huayrat]

3 minutes ago, marko kok prong said:

Crushed like an ant,most probably.

I think your meaning the illegal money lenders.. This is not..

[Crossy]

The bank themselves, probably nothing unless it's a huge sum.

 

BUT

 

They could sell the debt to a collection company who may have less, er, subtle collection techniques.

[Huayrat]

4 minutes ago, Crossy said:

The bank themselves, probably nothing unless it's a huge sum.

 

BUT

 

They could sell the debt to a collection company who may have less, er, subtle collection techniques.

After the land i reckon it will be half a million baht

[Andyfez]

Probably refer the debt to any farang friends.........

[HAKAPALITA]

Land is rather vague, Apart from Felangs overvaluing it generally up country its worth very little unless for growing rice with water bore, near a busy road that 7/11 can open.

[kingstonkid]

Legally they can seize the land as it was not here to sell.

 

That would .or he good for her.

 

If there was a guarantor they will go after them.

 

They will also.seize anything she has for instance where is she living

 

[scorecard]

15 hours ago, Crossy said:

The bank themselves, probably nothing unless it's a huge sum.

 

BUT

 

They could sell the debt to a collection company who may have less, er, subtle collection techniques.

 

Something like, pay up or both of your legs will be broken in 2 places, or violent assassination. death, Or violence / sever violence when a pick-up truck 'accidently' knocks your mother or wife and kids off a motorcycle, etc etc. Or your house 'accidently' catches fire...

[varun]

Is it the in-laws?

Edited September 29, 2018 by varun

[scorecard]

10 minutes ago, kingstonkid said:

Legally they can seize the land as it was not here to sell.

 

That would .or he good for her.

 

If there was a guarantor they will go after them.

 

They will also.seize anything she has for instance where is she living

 

 

'seize anything' can be true, even small things that could be sold and the cash deducted against the debt. Normally there is a limit, things like a quite limited amount of clothes, enough simple utensils to prepare a basic meal, etc,

 

This happened to the daughter of a family acquaintance, she borrowed way way beyond her means (bank should have never lent the money), eventually the bank sold the debt to a debt collector. The collector swooped in quickly and took her car and m/cycle and 99% of furniture clothes, appliances etc etc.  The collector didn't have any permission to enter the property, they just went ahead. Police contacted, police said 'too busy'.  

 

The debtor tried, after everything gone to claim that some of the items didn't belong to her (TV), Nobody listened, they just laughed at her.

 

 

Edited September 29, 2018 by scorecard

[alanrchase]

The bank lent more money than was covered by the value of the land?

[scorecard]

1 hour ago, HAKAPALITA said:

Land is rather vague, Apart from Felangs overvaluing it generally up country its worth very little unless for growing rice with water bore, near a busy road that 7/11 can open.

 

 

True, plenty of areas in Thailand, many just barely outside of villages and towns where you can buy OK land for very very little money (in the name of a Thai person of course).

 

My Thai son has done this, just 25K away from our current house in a city area, he's bought 3 not small plots of land (all roughly big enough for a small village of say 10 houses), all for a song, as speculation for his quite young daughters. Each plot was around 40-50,000Baht.

 

 

[BritManToo]

17 hours ago, Huayrat said:

If a Thai National does not pay the loan

They get a court order, them all land, motor vehicles, bank accounts owned by them (and any guarantor) can be seized and sold until the loan is paid. If it's not paid in the next 5 years, the debt is written off and you can start again.

[RichardColeman]

18 hours ago, Huayrat said:

They don't work and have no income.

Thats a little unspecific - dont want to work or cannot work ? Plenty of people walking around picking up tin cans and plastic to earn some money here. If they can move I'd tell them get off their butts and look for work and go to the bank with a plan. 

[Huayrat]

1 hour ago, RichardColeman said:

Thats a little unspecific - dont want to work or cannot work ? Plenty of people walking around picking up tin cans and plastic to earn some money here. If they can move I'd tell them get off their butts and look for work and go to the bank with a plan. 

No money means No money= No plan.. No vehicle and no home means nothing in value for the bank to take.. So im guessing the bank can't do anything after they take the land.. They can't be forced to work and your reply does not answer the question does it??

[Huayrat]

4 hours ago, kingstonkid said:

Legally they can seize the land as it was not here to sell.

 

That would .or he good for her.

 

If there was a guarantor they will go after them.

 

They will also.seize anything she has for instance where is she living

 

No Guarantor.. No motor vehicles and renting a place for 1000 baht per month.. So as i see it the bank can't recover the Drbt as i have told the Lady to give uo her land and move away..

[Ulic]

On 9/28/2018 at 4:39 PM, Crossy said:

The bank themselves, probably nothing unless it's a huge sum.

 

BUT

 

They could sell the debt to a collection company who may have less, er, subtle collection techniques.

I don't think the banks here ever take a loss on loans secured by real estate. They put it up for

sale for the amount they are owed and wait until hell freezes over. Then they can carry

it on the books as a full value asset. Not sure I am correct but judging from the decaying

unfinished projects from the 1997 Asian crash that can be seen in Bangkok/Pattaya that

could have been sold/salvaged and completed that is my guess. If the banks had sold those

projects they would have to declare a loss. Now buildings crumble until the land value meets

the outstanding loan amount.   

[DJ54]

There was an article about hospital admittance and 13 digit number. The injured person was a visit by the loan sharks (I assume) it was over money owed. They beat him unconscious.

 

Hopefully they borrowed from a legal loan facility. 

[Pedrogaz]

A variation of this happened to my wife. She had three properties on mortgages from 1990 . The rate was 20%. The bank repossessed the buildings in the late 1990s and in 2006 sued her claiming that the sale of the buildings did not cover the loan. They sued for the unpaid portion and the interest charges at 20% which came to a large sum pot money and which she was unable to pay. 

She declared bankruptcy which took several years. During that time she could not legally own any assets or she would have had to forfeit them, nor could I give her any money as they would have seized that too.

In practice, I understand that assets can be put in others' names to avoid seizure, but your lawyer can advise on this.

We are 12 years after the initial court date of December 2006, and my wife is still unable to get any credit or credit cards, even if it is just a second card on my account.

Get a lawyer and prepare for the long haul.

[Pedrogaz]

9 hours ago, alanrchase said:

The bank lent more money than was covered by the value of the land?

I think in practice when the ban repossesses the land they sell it off...cheaply to their mates and receive a kickback....and then try to recover the apparent "loss".

[baansgr]

Gotta ask, if the outstanding amount after the land is sold equals 500,000, firstly the banks lending criteria is skewiff but what on Earth did she spend all the money on...or is it accumulated interest that has made it so much?

[pedro01]

My guess would be they don't owe the bank anything.

 

It is however a marvellous sob story and much better than a sick buffalo. 

 

I would exit the relationship you are in immediately so that some other schmuck can take care of the payments.

[pedro01]

On 9/29/2018 at 7:21 PM, Pedrogaz said:

 

We are 12 years after the initial court date of December 2006, and my wife is still unable to get any credit or credit cards,

 

Could you PM me the name of your lawyer please?