House repossession

[Rambo]

A Thai neighbour has told me he is in danger of losing his house which he had placed as security against a loan which he has been unable to repay in full at this time. Could this happen legally even if he has offered to pay off in stages ? Would such a matter go to a court ? Any guidance that might assist him ?

[Excel]

To start with where did he borrow the money from ?  A lending institution such as a bank etc or some "other" ?   If the former then most certainly the lender will go to court to pursue their claim. There an agreement to repay may be accepted by the lender and will be entered into the court records as such. Of course it may not be accepted. and have to be negotiated at the court so both parties agree.

 

If the lender is "other" then be very wary of the next stages that the lender may possibly take, as almost certainly it will involve loan sharks if "other".

[Misty]

17 minutes ago, Rambo said:

A Thai neighbour has told me he is in danger of losing his house which he had placed as security against a loan which he has been unable to repay in full at this time. Could this happen legally even if he has offered to pay off in stages ? Would such a matter go to a court ? Any guidance that might assist him ?

Seen this happen - in this case the house was used as collateral against a bank loan made to the home owner's daughter. Daughter refused to pay for years, and didn't think there would be consequences.  By the time I heard of it the bank had taken legal action through the courts and was taking possession of the home.  The process apparently took years. So the borrower had plenty of time to do something, but chose not to.

[ubonjoe]

Moved to the Real Estate, Housing, House and Land Ownership forum. 

[DJ54]

In-laws Mama Papa long ago co-signed  for a “friend” who was buying a pick up truck. Loan never paid in-laws just recently lost the house. If I’d known sooner I’d gave some suggestions. Mama can’t read or write and could be possible reasoning to have lender back off repo…. But too late for that. Asked why didn’t go after their friend to pay it…. 

[KhunLA]

Quote

Any guidance that might assist him ?

Yea, go talk to RE lawyer ... ????

[Kenny202]

I heard this story at least 10 times in Thailand. Usually a pre cursor to a request for money. I always say if you cant pay them how will you pay me? Chuckle and walk off. The request is usually accompanied by a fanciful tale of how me loaning them money will in someway benefit me lol

[scubascuba3]

i bet 10 baht he is teeing you up so you give\lend him money

[Pib]

Of course he could legally lose his home regardless of his desire to pay in stages different from the loan contract.  Your neighbor signed a loan contract with the bank to pay off the loan in monthly installments of X-amount of baht per month (a.k.a., stages). 

 

The neighbor is pretty much at the mercy of the bank.  The neighbor could always ask to restructure the loan (which I expect he has already done) but it's solely up to the bank to approve such a loan restructure. 

 

Otherwise, the bank will resort to court action/repossession of the home time.....pretty much standard procedure worldwide for a "Non Performing Loan (NPL)" which means the debtor has not been meeting the scheduled loan payments.

[Orinoco]

Don't get involved in Thai people debts.

Unless you can GIVE him the money to pay it all off. 

His sizing you up for a loan., run a mile.

He has family let them step in. Not you.

 

 

 

[ezzra]

I recently bought a house in Pattaya (on a Thai friend name) that had 24 hours to come up with the money or the bank will take over, and because of the situation the house was price at a steal amount that i couldn't resist to buy it...

[scubascuba3]

5 minutes ago, ezzra said:

I recently bought a house in Pattaya (on a Thai friend name) that had 24 hours to come up with the money or the bank will take over, and because of the situation the house was price at a steal amount that i couldn't resist to buy it...

did you buy it in Thai company name?

[markwhite]

As said, it depends where he's borrowed money from. If it is from a bank or other reputable organisation, they do not tend to be in the business of deliberately taking possession of secured property just for the sake of it. It is a very last resort, and usually one that is taken when all other options have absolutely and irretrievably failed. There is more money to be made from keeping a borrower in their house and milking them for interest for the next 20 years than taking possession and selling the property. IME there are two categories of deliquent borrowers: those who won't pay and those who can't pay. You get the "won't payers" out as quick as you can, but you give every chance to the "can't payers" until they prove repeatedly  that they are not capable of keeping to any payment agreement in the long term. So possibly your neighbour has just burned too many chances and the bank no longer believe him.

 

Source: 15 years in retail banking in the UK, but admittedly all experience in the past in a different country may not be relevant to how things work here. Though I suspect the principles are somewhat similar.

[Excel]

Interesting that @Rambo has not replied or offered any info on my original question which was "To start with where did he borrow the money from ?  A lending institution such as a bank etc or some "other" ?"

 

This indicates to me that his post lacks any sort of credibility. In fact it appears he/she has not  posted further and the fact there are so few posts by him/her since joining in 2006 I wonder if he/she is just another that I would term a "clickbait" sleeper perhaps ?

[Rambo]

Thanks for the useful comments. I do not have any further details at this time. The only suggestion I can give to him at this time is to contact a lawyer to assist if possible. Difficult to comment when only have partial info. 

[ChaiyaTH]

Seen it happen once, the police cleared them out like 5AM and after it belonged to the bank and sat empty for 2 years. Relatives returned to steal anything they could, light bulbs, the aircon compressor etc.

[PJ71]

On 8/3/2022 at 6:32 AM, Orinoco said:

Don't get involved in Thai people debts.

This.

[LarrySR]

On 8/2/2022 at 6:59 PM, scubascuba3 said:

i bet 10 baht he is teeing you up so you give\lend him money

Precisely. Always a bit suspicious when a Thai want to discuss with a foreigner the solutions to a Thai problem.

My advice, when you see 2 guys in full face helmets show upon a motorcycle, don't stand in the line of fire.

[SheungWan]

On 8/3/2022 at 3:34 PM, Rambo said:

Thanks for the useful comments. I do not have any further details at this time. The only suggestion I can give to him at this time is to contact a lawyer to assist if possible. Difficult to comment when only have partial info. 

Contact lawyer is probably the only appropriate advice irrespective of information provided. 

[Kenny202]

2 hours ago, SheungWan said:

Contact lawyer is probably the only appropriate advice irrespective of information provided. 

Problem is most of the lawyers here will lead you up the garden path. First task get a recommendation for a lawyer

[SheungWan]

2 hours ago, Kenny202 said:

Problem is most of the lawyers here will lead you up the garden path. First task get a recommendation for a lawyer

In that case the OP can just wish his neighbour "Good Luck" in sorting out a solution with the lender. And avoid being blamed for any specific advice.