bank property sales

[beaufoy]

What is going on with the banks trying to sell bottom grade housing for top grade prices.

I have looked at some of the pictures and have properties with asking prices of 3 mill and said same house could be purchased for 2 million and the 2 mill version would be in better condition

do the banks expect the person interested to start bidding at half the asking price

[ukrules]

I believe the reserve price is the amount of outstanding debt regardless of what it's actually worth.

 

I read somewhere here on this forum that they are not allowed to sell for less then the debt value....this is why they will never sell, ever.

[soi3eddie]

5 hours ago, ukrules said:

I believe the reserve price is the amount of outstanding debt regardless of what it's actually worth.

 

I read somewhere here on this forum that they are not allowed to sell for less then the debt value....this is why they will never sell, ever.

 

This is what I have heard over the years. Even since year 2000 when the banks still had books of properties repossesed after the '97 Asian financial crisis.

 

Additionally, from personal experience with a girlfriend who was buying a small new build house, some developers will inflate purchase price and "rebate" the extra to the buyer as an incentive. Worked out at about 120%. I was surprised that a lot of deception of the banks can occur too regarding the financial circumstances of the buyer. She really had no means to get the loan but it was approved. Purchase price was about 1.2 million Baht repayable over about 30yrs IIRC. No wonder repossessions rarely get reduced in price by much.

 

[Toosetinmyways]

I was once looking for a resto project from a bank sale. One house I visited had been completely stripped. No tiles on floor or walls. bathrooms were bare concrete shells with 4 blue pipe sticking out of the walls. Similar house in good to average condition 15 million, bank asking 12.5 million.

[chrisandsu]

The people that work in the bank cherry pick the best ones and I can assure you they get it from way less as I bought some land off a lady that worked in the bank and got it for a lot cheaper then the market value and she must of got it for a lot less as she was happy with her profit too . 

[chilly07]

Normal process is that banks try to sell at outstanding debt failing which they go after the borrower for the difference so always worth an offer

[natway09]

Go look & then make a serious formal offer & see what happens

You may be surprised as happened to my wife & I

[up-country_sinclair]

Could someone please post a link to current bank property sales?

Thanks!

[Cake Monster]

OP

The Banks have lent money against these Properties.

Often they have lent more than the Property is actually worth. EG lent 3 Million on a Property that is only worth about 2 Million.

Due to poor appraisals, they now need to recoup their losses, hence the over priced Properties they offer for Sale.

[DUNROAMIN]

I have seen many houses repossessed for default mortgages by banks and many of the houses have been left to rot because of the high prices they want. It appears the banks here have money to burn, and can't be bothered to on sell them at a fair price, they appear to want the original price for the land and house plus interest lost from the original mortgagee. Just saying.

[onekoolguy]

There are lots of bargains right now. Start looking and make low offers. There are plenty of deals to be had!

I agree the banks seem to hold prices high and may not be your best bet? However I would make a few low offers and see what response you get? The true bargains sell quickly! I found one that was reduced by about half. first day listed. I agreed to buy at the listing price but argued about a closing cost fee of about $1,000 usd. They sold it to someone else that day! There are more!

[Halfaboy]

This is the site of the legal execution department. Unfortunately it is all in Thai, so you might need some assistance. Also the pictures do not give a good impression:

 

asset.led.go.th/newbid/asset_search_province.asp?search_province=%E0%AA%D5%C2%A7%E3%CB%C1%E8&search_sub_province=%E0%AA%D5%C2%A7%E3%CB%C1%E8

 

Have fun....

 

[TallGuyJohninBKK]

4 hours ago, DUNROAMIN said:

I have seen many houses repossessed for default mortgages by banks and many of the houses have been left to rot because of the high prices they want. It appears the banks here have money to burn, and can't be bothered to on sell them at a fair price, they appear to want the original price for the land and house plus interest lost from the original mortgagee. Just saying.

 

I've always wondered if one possible reason for that practice by the Thai banks here might be the following -- as long as they're carrying the unsold/defaulted/repossessed property on their books, they don't have to book it as a loss transaction. But if they actually sell a property to you for 2 million that they have a 3 million debt on, THEN, they actually have to record a real 1 million loss on their books. Which presumably, is something they don't typically want to do.

 

[SomchaiCNX]

Don't try to understand, a couple people mentioned it already they just ask what the previous owner own them. On the other hand I met a couple Hi so people who did pay only the downpayment and where evicted only years (5+ years) later and than they moved to another new house.   

[Scouse123]

3 hours ago, SomchaiCNX said:

Don't try to understand, a couple people mentioned it already they just ask what the previous owner own them. On the other hand I met a couple Hi so people who did pay only the downpayment and where evicted only years (5+ years) later and than they moved to another new house.   

 

It figures!

 

If they aren't repaying silly things like the house mortgage and interest payments, they can go out and buy a Mercedes and that shows ' real face '  as far as they are concerned.

 

Areas up here in Isaarn, the amount of times when out driving through villages and I come across a ' shack ' of an house with a new Toyota Fortuner or Vigo Champ outside!

 

My other half said ' Well, when they pull up outside the bar or restaurant, the people can't see their house! '

 

May mother used to describe women like that as ' All fur coat and no knickers! '  I still laugh at that expression.

 

 

 

 

[DUNROAMIN]

On 4/5/2021 at 12:08 AM, TallGuyJohninBKK said:

 

I've always wondered if one possible reason for that practice by the Thai banks here might be the following -- as long as they're carrying the unsold/defaulted/repossessed property on their books, they don't have to book it as a loss transaction. But if they actually sell a property to you for 2 million that they have a 3 million debt on, THEN, they actually have to record a real 1 million loss on their books. Which presumably, is something they don't typically want to do.

 

Keep in mind that on many occasions when the buyer defaults they have already paid maybe one or two years or more loan payments, plus deposit. Why can't the banks sell the property for the money owed or sell for original price. The longer these places sit the less there worth. Just saying.