Defaulting on Mortgage

[Neeranam]

I've got a mortgage and thinking of buying a new house. The new house would be cash.

 

If I tell the bank I can't pay the mortgage and just to sell it, I would be better off as only had the mortgage for 6 years.

 

We own the land adjacent to the house so could sell that at a profit. 

 

Would there be any ramifications for defaulting on the mortgage, which is in my name?

 

[sirineou]

I am not sure what the foreclosure laws are in Thailand, but I would seek legal advice before attempting, The bank might be able to go after your other  assets and bank accounts. 

https://franklegaltax.com/foreclosure-procedures-in-thailand/  

Edited May 1, 2020 by sirineou

[thequietman]

If ur married and she has assets, they can go for those.

 

Also when you buy your new house, they will go for that. ????

[BritManToo]

9 minutes ago, Neeranam said:

Would there be any ramifications for defaulting on the mortgage, which is in my name?

They could seize all property/bank accounts/vehicles registered in your name.

And you wouldn't be able to own any more or get credit for 5 years.

[sirineou]

Most likely the foreclosed property will be auctioned off . and the proceeds will for towards the balance of the loan, then they will go after you for the remaining balance. 

[thequietman]

19 minutes ago, Neeranam said:

If I tell the bank I can't pay the mortgage and just to sell it, I would be better off as only had the mortgage for 6 years.

You sell it at cost and move on. Hopefully, you can get a buyer.

 

Figure out how you can break even and sell at that, if possible. With the adjacent land attached to the sale, you could create a good bargain for someone. Then buy your new house free and clear. ????

[petermik]

Don,t be silly.......

[Neeranam]

8 minutes ago, BritManToo said:

They could seize all property/bank accounts/vehicles registered in your name.

And you wouldn't be able to own any more or get credit for 5 years.

My new car is in my wife's name.

 

What if I had zero in the bank and put it all into her account?

 

Btw, I might change my name in a few months on getting Thai citizenship.

[BritManToo]

Just now, Neeranam said:

My new car is in my wife's name.

What if I had zero in the bank and put it all into her account?

That's what most Thais do .......

 

Can't understand how walking away can be worthwhile.

My mortgage (7 years into 27 year term), purchase price 1M8, deposit 300k, 6-7 years repayments 350k.

I owe 1M150k ........... sure I could sell it for that.

 

You must have made a really bad purchase!

Edited May 1, 2020 by BritManToo

[Neeranam]

3 minutes ago, BritManToo said:

That's what most Thais do .......

 

Can't understand how walking away can be worthwhile.

My mortgage (7 years into 27 year term), purchase price 1M8, deposit 300k, 6-7 years repayments 350k.

I owe 1M150k ........... sure I could sell it for that.

 

You must have made a really bad purchase!

No, a reasonable purchase. Are you sure your 7 years repayment is taken off the amount due and not just paying the interest?

[Neeranam]

Oh, I only put down 50,000 as I knew the builder, who is also the president of a bank(not the one where I have the mortgage)

[BritManToo]

Just now, Neeranam said:

No, a reasonable purchase. Are you sure your 7 years repayment is taken off the amount due and not just paying the interest?

Repayments go about 50/50 ........ principal/interest

Edited May 1, 2020 by BritManToo

[sirineou]

4 minutes ago, Neeranam said:

My new car is in my wife's name.

 

What if I had zero in the bank and put it all into her account?

 

Btw, I might change my name in a few months on getting Thai citizenship.

I have being reading about this and brother I will tell you this. 

TALK TO A LAWYER FIRST,or other expert on the subject. The foreclosure laws in Thailand from what little I understand , are brutal!!! 

Not sure if you could ever change your name, what you might be able to get is a AKA, (Also-known-As ) .your old name will probably remain in the records attached to your new name. 

"the creditor applies directly to the debtor’s source of income: with the employer. As soon as he receives the seizure order, the creditor obtains a seizure lien on the wage claim of the employee. The employer must pay the attachable part of the salary directly to the creditor. For social reasons, the seizure of wages or salaries is very restricted, always leaving the debtor with a living wage minimum. In Thailand, the monthly wage amount of less than 20,000 THB is not seizable. "

https://franklegaltax.com/foreclosure-procedures-in-thailand/

 

[Neeranam]

3 minutes ago, BritManToo said:

Repayments go about 50/50 ........ principal/interest

Thanks, that's useful. How many years does it stay like this? My bank told me it was mostly interest for the first 5 years. I guess I'd better pay them a visit and see the amount paid.

[BritManToo]

Just now, Neeranam said:

Thanks, that's useful. How many years does it stay like this? My bank told me it was mostly interest for the first 5 years. I guess I'd better pay them a visit and see the amount paid.

For me 27 years (if I make it that long).

1st year you pay off a lot more due to the 'introductory' interest rate, usually 1-2%.

After that just under half your repayment should be paying off the principal.

 

You don't get a repayment receipt every month?

Edited May 1, 2020 by BritManToo

[Swiss1960]

22 minutes ago, Neeranam said:

My new car is in my wife's name.

 

What if I had zero in the bank and put it all into her account?

 

Btw, I might change my name in a few months on getting Thai citizenship.

Thousands of Thai change their name annually for whatever reason, if only for better luck. You really think amphoes would keep that secret if asked? 

 

And with a bad credit history and maybe a court record, how sure are you to still get the citizenship?

[Neeranam]

2 minutes ago, Swiss1960 said:

Thousands of Thai change their name annually for whatever reason, if only for better luck. You really think amphoes would keep that secret if asked? 

 

And with a bad credit history and maybe a court record, how sure are you to still get the citizenship?

It would different for me. I could have 2 separate identities, at least for 9 years until my UK passport was due for renewal. 

 

Once the king has signed what Gen. Anupong and Prayut have signed already, nobody is going to question it. 

 

 

[Neeranam]

14 minutes ago, Neeranam said:

Thanks, that's useful. How many years does it stay like this? My bank told me it was mostly interest for the first 5 years. I guess I'd better pay them a visit and see the amount paid.

 

10 minutes ago, BritManToo said:

For me 27 years (if I make it that long).

1st year you pay off a lot more due to the 'introductory' interest rate, usually 1-2%.

After that just under half your repayment should be paying off the principal.

 

You don't get a repayment receipt every month?

No, just every year. 

[Susco]

Give the bank some ripples, they gonna be $100.000 soon anyway......according to you

[jadee]

I never knew foreigners could get mortgages on houses. I looked into it back in 2009 and all the banks said no. I guess things have changed Surely the loan has a guarantor, right? Wouldn't the bank just chase the guarantor if you default on the mortgage? 

[FritsSikkink]

59 minutes ago, Neeranam said:

My new car is in my wife's name.

 

What if I had zero in the bank and put it all into her account?

 

Btw, I might change my name in a few months on getting Thai citizenship.

You are married so they can take her assets too. Doubt you get citizenship when you try to screw the bank.

[Neeranam]

1 hour ago, jadee said:

I never knew foreigners could get mortgages on houses. I looked into it back in 2009 and all the banks said no. I guess things have changed Surely the loan has a guarantor, right? Wouldn't the bank just chase the guarantor if you default on the mortgage? 

I think it was because the builder is a VP of the bank next to the bank where I have the mortgage. 

[BritManToo]

58 minutes ago, jadee said:

I never knew foreigners could get mortgages on houses. I looked into it back in 2009 and all the banks said no.

 

You can't get a mortgage yourself by asking at a bank, but you can get a mortgage buying a house from a developer.

Developers have connections with banks. they'll tell you what bank and arrange everything for you.

[ChaiyaTH]

25 minutes ago, BritManToo said:

You can't get a mortgage yourself by asking at a bank, but you can get a mortgage buying a house from a developer.

Developers have connections with banks. they'll tell you what bank and arrange everything for you.

Can confirm that too from the village I rent now and the owner has like 8 in Sansai. However, the building quality is low and the price you initially pay for the house is almost double compared to doing it yourself from scratch. Then the heavy interest on top. You end up paying like 3-4 times the original true land and house value. 

Figured it is a better deal to rent cheap and save money upfront + do it from scratch (15 years VS 30 years) as cash savings also return me 4-5% yearly.
It is a high price to pay if you want to live in the nice owned house from day 1 + I fear most houses will need a new mortgage after 30 years for renovation.
Kind of makes owning a house trough a 30 year mortgage in Thailand more of a liability than a asset... or a privileged rental place with the bank.

But temptation has been there many times to do it, I have to admit.

Edited May 1, 2020 by ChaiyaTH

[BritManToo]

Just now, ChaiyaTH said:

Figured it is a better deal to rent cheap and save money upfront + do it from scratch. 

Not if she dumps you the day after you finished the build.

My reason for getting a house with a mortgage was security of my assets.

If the bank owns 90% of the property, nobody can cheat you out of it.

[maxisrael]

We had a mortgage of 1m to be paid back in 10 years next month last payment of 12.300 baht last interest almond 68 baht at rate of now 4.975% Started at 5.75%

 

[kingstonkid]

20 hours ago, Neeranam said:

I think it was because the builder is a VP of the bank next to the bank where I have the mortgage. 

OP

I am going t through part of this now.  My gf bought a house (2 actually) and then when I found out where she was getting the money for mortgages I kicked her out.

 

Since then I have received all the paperwork on the 2 houses as the only address the banks have is the one I am at.

 

I have spoken to my lawyer and investigated everything luckily my name isn't on the papers HOWEVER I asked what would happen if i had been on the papers.

 

First you are going to be served a huge amount of paperwork.  Some of the papers they send will have your name as well as over a hundred other people on it as they do services here inbulk.

 

You will be expected to show up in court abut 8 months later.  If my name was on the papers and I did not appear in court my lawyer told me then I would be charged and the police and immigration would be notified.

 

Upon notification the immigration would have the ability to "politely" tell me that i was no longer wanted in the country.

 

The house and property is put up for auction and if they receive enough to pay all the bills then except for a credit hit that is that.  However, the bank does have the ability to file to put you in bankruptcy and seize all your possessions up to the amount owed and any costs.

 

As to changing your name sorry many Thais do that but their book number stays the same so police are able to find you.

Also if you are married as is stated yur wife will be hit with the same things.

 

If this happens good luck trying to get a mortgage or loan for the new property and evenif you do once the bank finds out they can call in the debt to guarantee you do not do the same to them.

 

You say the guy you bought the house from is a VP of a bank.  Did it not cross your mind that if you <deleted> him off or another bank that the word would get out about you.

 

Also if you sell the house and don't pay off the mortgage you would be opening yourself up to a legal battle as well a fraud charges from the person that buys it and their bank.

 

Inn summary don't be an <deleted> put your house up for sale but make sure that it is enough to pay off the loan.

 

 

[donmuang37]

Good to change your citizenship to Thai as you want to take no responsibility for a loan you agreed to pay. Just like many Thai people. You fit right in! If you can cheat the bank, you will.  Sad...

[Neeranam]

27 minutes ago, kingstonkid said:

OP

I am going t through part of this now.  My gf bought a house (2 actually) and then when I found out where she was getting the money for mortgages I kicked her out.

 

Since then I have received all the paperwork on the 2 houses as the only address the banks have is the one I am at.

 

I have spoken to my lawyer and investigated everything luckily my name isn't on the papers HOWEVER I asked what would happen if i had been on the papers.

 

First you are going to be served a huge amount of paperwork.  Some of the papers they send will have your name as well as over a hundred other people on it as they do services here inbulk.

 

You will be expected to show up in court abut 8 months later.  If my name was on the papers and I did not appear in court my lawyer told me then I would be charged and the police and immigration would be notified.

 

Upon notification the immigration would have the ability to "politely" tell me that i was no longer wanted in the country.

 

The house and property is put up for auction and if they receive enough to pay all the bills then except for a credit hit that is that.  However, the bank does have the ability to file to put you in bankruptcy and seize all your possessions up to the amount owed and any costs.

 

As to changing your name sorry many Thais do that but their book number stays the same so police are able to find you.

Also if you are married as is stated yur wife will be hit with the same things.

 

If this happens good luck trying to get a mortgage or loan for the new property and evenif you do once the bank finds out they can call in the debt to guarantee you do not do the same to them.

 

You say the guy you bought the house from is a VP of a bank.  Did it not cross your mind that if you <deleted> him off or another bank that the word would get out about you.

 

Also if you sell the house and don't pay off the mortgage you would be opening yourself up to a legal battle as well a fraud charges from the person that buys it and their bank.

 

Inn summary don't be an <deleted> put your house up for sale but make sure that it is enough to pay off the loan.

 

 

Thanks, that's useful. 

[Ventenio]

this is very easy.  throw water on the house, say mai bpen rai krap a few hundred times, and give the keys to the bank.  they will throw you a party and likely even give you an extra million baht for letting them sell the house for you.  there are only paper records, so when you change your name the bills will be sent to the moon.....don't worry, i had 100 billion in debt, changed my name, and took out another loan the same day.  

 

very easy.  foreclose is a latin word, meaning "happy days for everyone"