mixed land and house ownership, problems

[jumbo]

An elderly German friend came to me with the following issue, and I could not give him proper advise

 

The land they live on is owned by his wife and her daughter

The house they all live in is owned by the daughter

On the land mother and daughter have a loan equal to 50% of the value of the land

House is free

 

His wife is guarantor for her sisters mortgage on the sisters house and she informed the wife that she could no longer pay the mortgage

 

His question is;  when the bank would call on his wife, being the guarantor, what could they do, he is afraid they will take the land and do something with

Sell it or jeopardize the house in any way.....

 

Anyone has any idea?? Or suggestion?

 

thanks

 

[CharlieKo]

If his wife can't make the payments, they will take the land.

 

[IvorBiggun2]

The OP doesn't say what the land title is.

 

Quote

Holders can only use land as a guarantee to get a small loan from government banks. Despite these strict rules, many holders remain poor and then illegally transfer the plots to investors and land grabbers. Much Sor Por Kor land is misused as rich investors use it to build large hotels or even mining sites.

 

 

[Olav Seglem]

Of course the bank will resell it i fail to make down payment of the loan.

Thats the whole reason for the morgage. (And why putting up "your house" in thailand for such, should be a "no NO" !!!

[jumbo]

21 hours ago, CharlieKo said:

If his wife can't make the payments, they will take the land.

 

That is what I though to, but the land is only in her ownership for 50% and the house, not her property, is built on it

How can they take and sell?

[jumbo]

20 hours ago, IvorBiggun2 said:

The OP doesn't say what the land title is.

 

 

 

SCB loan, they first bought the land and then built the house. house is free of mortgage but not in his wife his name

Land repayment is low, i understand around 3.000 thb per month so they did not bother to pay down

[jumbo]

18 hours ago, Olav Seglem said:

Of course the bank will resell it i fail to make down payment of the loan.

Thats the whole reason for the morgage. (And why putting up "your house" in thailand for such, should be a "no NO" !!!

House has not been put up for anything as it is not the wife her property

Who would sell or buy land for that matter that has another person his property on it????

[IvorBiggun2]

22 hours ago, IvorBiggun2 said:

The OP doesn't say what the land title is.

 

The OP still doesn't say what the land title is.

 

1 hour ago, jumbo said:

Who would sell or buy land for that matter that has another person his property on it????

 

It happens here. Unless the buyer of the land and the owner of the house come to an agreement the owner of the land can legally deny access to the house. 

[motdaeng]

2 hours ago, jumbo said:

Who would sell or buy land for that matter that has another person his property on it????

 

it might even be possible that the new landowner denies the houseowner any access to his "own house"!

this is thailand, how knows ... it doesn't make sense to take this risk.

[jumbo]

On 12/17/2023 at 7:54 AM, IvorBiggun2 said:

 

The OP still doesn't say what the land title is.

 

 

It happens here. Unless the buyer of the land and the owner of the house come to an agreement the owner of the land can legally deny access to the house. 

 

Land is 2 rai, the loan is 50% of value... so they could pass on 1 rai.... 

But it is a crappy situation for sure

I will advise him to talk to a lawyer...need one that speaks German as he barely speaks English

 

 

[jumbo]

Update.

We visited a lawyer yesterday. He explained the best way to prevent an issue is to pay down the land loan

or, if needed, move the loan to the house. Then change ownership of land to daughter

That way the wife has no ownership of anything and nothing can be taken by the bank.

I think they understand the issue, the bank visit is theirs

 

 

[YaDongImproved]

 

1. The bank goes to court and get a judgment. You will know by the judgement exactly how much is owed with interest and sometimes legal fees.

 

2. The bank can execute the judgment with the department of legal execution department (https://www.led.go.th/?lang=en) It is an auction and takes months normally. They can execute on any of the property belonging to the people mentioned in the judgment, including the guarantors that are normally part of the case. The people sued can get a copy of the decision at the provincial court (which is probably the one have jurisdiction depending on amounts) easily.

 

Bank rarely calls. They send documents at the official address of the people which is their ta bian baan. You have 15 days to make a defense if you receive it in hands and 30 days if put on the door.

 

Sebastien from ThaiLawOnline.