Can I get a loan?

[AsparrownamedJack]

Hi all.

We are trying to get a loan secured against land in Ubon Thani. the land was valued at approximately 385,000 baht about a year ago and we need a loan of about 200,000. 

My (Thai) wife has struggled because of reasons like the size and location of the land, and I was wondering if I get get the loan - secured by my wife's land - in my name. Or maybe somebody can recommend a legitimate finance company that will be happy to do business with my wife.

Thanks in advance. 

[retarius]

Sorry, having discussed this type of idea with the wife many years back, I very much doubt it, the land isn't even in your name....or shouldn't be. 

[Mike Lister]

Which ever lender you approach will be looking to make sure the borrower has the means to repay the loan, that means employment and earnings history. No reputable lender will lend solely against the land without that income being confirmed. Since foreigners cannot own land in Thailand, the best you could hope for is that your wife acts as guarantor and the land is used as collateral. But this really comes down to whether your wife is gainfully employed and her earnings levels etc.

[AsparrownamedJack]

Thanks. 

She can show a regular income. That's not the issue. The reason she's struggling is to do with technical 'issues' with the land itself. For example, one company said the land wasn't big enough (it's just over 5 Rai). The land being in Ubon and us being in Ratchaburi is also probably not helping. 

[Mike Lister]

1 minute ago, AsparrownamedJack said:

Thanks. 

She can show a regular income. That's not the issue. The reason she's struggling is to do with technical 'issues' with the land itself. For example, one company said the land wasn't big enough (it's just over 5 Rai). The land being in Ubon and us being in Ratchaburi is also probably not helping. 

Those seem like odd reasons to deny a loan application, presumably the land has a full channotte?

[PPGuy]

There is the Kai Fak loan arrangement - this is a sale with right of redemption. An explanation can be seen here:

http://www.globalmortgagefinance.com/kai-faak-or-kai-faaq.html

 

It can be considered as a risky loan to take out as these finance companies tend not to request info on ability to repay the loan in the agreed timescale as a default suits them better by gaining assets at lower than market value.

 

If you do go down this route just be very sure you can repay the loan within the agreed period.

[scorecard]

35 minutes ago, Mike Lister said:

Which ever lender you approach will be looking to make sure the borrower has the means to repay the loan, that means employment and earnings history. No reputable lender will lend solely against the land without that income being confirmed. Since foreigners cannot own land in Thailand, the best you could hope for is that your wife acts as guarantor and the land is used as collateral. But this really comes down to whether your wife is gainfully employed and her earnings levels etc.

 

There's also the reverse. It is possible to find lenders who seem to quite flexible but very possible the time could come when the lenders become quite nasty and tricky, beware.

[AsparrownamedJack]

Quote

 

There is the Kai Fak loan arrangement - this is a sale with right of redemption. An explanation can be seen here:

http://www.globalmortgagefinance.com/kai-faak-or-kai-faaq.html

 

It can be considered as a risky loan to take out as these finance companies tend not to request info on ability to repay the loan in the agreed timescale as a default suits them better by gaining assets at lower than market value.

 

If you do go down this route just be very sure you can repay the loan within the agreed period.

 

Thanks. 

This is just the type of loan I was expecting to get, if anything at all. We're both well aware of the risks and have every intention of repaying on time which would remove that particle hazard. 

I should explain in more detail:

My wife already has a government loan against the land. Since we took out the loan, my income has since been hit hard meaning we couldn't make the repayments. We've since moved out of Bangkok to slash our overheads and can balance the books again, but the government guy (sorry, I don't know the terminology) has already started legal proceedings. We have a month to find the outstanding money or the land will be sold, which is problematic for my wife considering it was passed down by family. 

Oh, and even though my income has taken a hit, it's still a reasonable amount. 

Edited January 11 by AsparrownamedJack

[Georgealbert]

Do you have the chanote/land documents or are they deposited with the ‘government loan’? Without them the Kai Fak loan arrangement does not even seem an option.

 

I think getting any formal loan seems very difficult, given your updated/full information disclosure.

 

Please don't let pride over it being family land lead you into an informal/high interest loan, as you seem to already facing legal action and don't need further problems.

 

Can only wish you luck.

[FritsSikkink]

10 hours ago, AsparrownamedJack said:

Thanks. 

This is just the type of loan I was expecting to get, if anything at all. We're both well aware of the risks and have every intention of repaying on time which would remove that particle hazard. 

I should explain in more detail:

My wife already has a government loan against the land. Since we took out the loan, my income has since been hit hard meaning we couldn't make the repayments. We've since moved out of Bangkok to slash our overheads and can balance the books again, but the government guy (sorry, I don't know the terminology) has already started legal proceedings. We have a month to find the outstanding money or the land will be sold, which is problematic for my wife considering it was passed down by family. 

Oh, and even though my income has taken a hit, it's still a reasonable amount. 

You can't get a loan on the land when it is already collateral for the government loan and you weren't able to pay back on time.

[PPGuy]

15 hours ago, AsparrownamedJack said:

Thanks. 

This is just the type of loan I was expecting to get, if anything at all. We're both well aware of the risks and have every intention of repaying on time which would remove that particle hazard. 

I should explain in more detail:

My wife already has a government loan against the land. Since we took out the loan, my income has since been hit hard meaning we couldn't make the repayments. We've since moved out of Bangkok to slash our overheads and can balance the books again, but the government guy (sorry, I don't know the terminology) has already started legal proceedings. We have a month to find the outstanding money or the land will be sold, which is problematic for my wife considering it was passed down by family. 

Oh, and even though my income has taken a hit, it's still a reasonable amount. 

Bit of a pickle, but there may be possibilities of a refinancing deal although the ongoing legal action may make that problematic. Updating the chanote / exchange of funds is a simple process at the Land Office so, provided the Government Organisation gets paid in full, including all costs, and the legal action is confirmed as discontinued, it may be possible.

 

My family has used this finance company for a recent refinancing:

https://www.thaicreditbank.com/th

We found them reasonable to deal with but they did need full financial info/pay details, which seemingly may not be an issue for your wife. Obviously the current legal action may be a show stopper but worth a try, i would say.

 

[AsparrownamedJack]

6 hours ago, FritsSikkink said:

You can't get a loan on the land when it is already collateral for the government loan and you weren't able to pay back on time.

The dude working in the government department said otherwise. In fact - he suggested it. 

[AsparrownamedJack]

1 hour ago, PPGuy said:

Bit of a pickle, but there may be possibilities of a refinancing deal although the ongoing legal action may make that problematic. Updating the chanote / exchange of funds is a simple process at the Land Office so, provided the Government Organisation gets paid in full, including all costs, and the legal action is confirmed as discontinued, it may be possible.

 

My family has used this finance company for a recent refinancing:

https://www.thaicreditbank.com/th

We found them reasonable to deal with but they did need full financial info/pay details, which seemingly may not be an issue for your wife. Obviously the current legal action may be a show stopper but worth a try, i would say.

 

Thank you

 

[AsparrownamedJack]

7 hours ago, Georgealbert said:

Please don't let pride over it being family land lead you into an informal/high interest loan, as you seem to already facing legal action and don't need further problems.

 

Can only wish you luck.

Don't worry, that's not going to happen. We need the money urgently but I'm also savvy to loan sharks and the like so I won't be going down that route. 

[JayClay]

18 hours ago, AsparrownamedJack said:

My (Thai) wife has struggled because of reasons like the size and location of the land, and I was wondering if I get get the loan - secured by my wife's land - in my name

 

How would having the loan in your name have any affect on the decision making process?

 

If the applications are being rejected on the size and location of the land, then that issue surely still exists when trying to apply in your name? 

[AsparrownamedJack]

Well, we've had a preliminary yes to a Kai Fak agreement. It's a well known, established business with very positive reviews. We've been 100% upfont with all the details so hopefully there should be nothing to change their minds. 

Nothing confirmed yet, so *touches wood*.

They even discussed my wife potentially working as an agent for them!

[FritsSikkink]

On 1/12/2024 at 1:16 PM, AsparrownamedJack said:

The dude working in the government department said otherwise. In fact - he suggested it. 

That dude was working in what position, was he a lawyer?

[Digitalbanana]

On 1/11/2024 at 8:23 PM, AsparrownamedJack said:

My wife already has a government loan against the land.

 

Does this not seem a little ridiculous to you? How can the pair of you get a loan on land that is already collateral for another loan? Normally any loan would include a lien of sorts to ensure this nonsense doesn't happen would it not?

[PPGuy]

3 hours ago, Digitalbanana said:

 

Does this not seem a little ridiculous to you? How can the pair of you get a loan on land that is already collateral for another loan? Normally any loan would include a lien of sorts to ensure this nonsense doesn't happen would it not?

 

Property loans are easily transferred between loan companies by way of updating chanotes at the Land Office and concurrent settlement of outstanding loan balance. The Land Office has to be fully satisfied before they will agree to any updates on the chanote, with the agreement of the original loan company, and no loan company will agree a loan if they don't have sufficient collateral, or full title if on a Kai Fak basis, to cover their loan. Very simple process.

Edited January 15 by PPGuy

[MarieFerrante]

On 1/11/2024 at 3:23 PM, AsparrownamedJack said:

Thanks. 

This is just the type of loan I was expecting to get, if anything at all. We're both well aware of the risks and have every intention of repaying on time which would remove that particle hazard. 

I should explain in more detail:

My wife already has a government loan against the land. Since we took out the loan, my income has since been hit hard meaning we couldn't make the repayments. We've since moved out of Bangkok to slash our overheads and can balance the books again, but the government guy (sorry, I don't know the terminology) has already started legal proceedings. We have a month to find the outstanding money or the land will be sold, which is problematic for my wife considering it was passed down by family. 

Oh, and even though my income has taken a hit, it's still a reasonable amount. 

I hope everything is ok with your loan nowadays. I had the same problem when I wanted to buy a used car and I bought it but I forgot to check about how it was buyed before. Purchase of the car was made by the loan and loan sharks were looking at that car because it was the only way to get money for the repayment so they scouted me and started asking me about repaying the loan for that car. I was really scared due to this situation so I called the police and they didn't help me at all.

[MarieFerrante]

14 hours ago, MarieFerrante said:

I hope everything is ok with your loan nowadays. I had the same problem when I wanted to buy a used car and I bought it but I forgot to check about how it was buyed before. Purchase of the car was made by the loan and loan sharks were looking at that car because it was the only way to get money for the repayment so they scouted me and started asking me about repaying the loan for that car. I was really scared due to this situation so I called the police and they didn't help me at all.

 

On 1/11/2024 at 3:23 PM, AsparrownamedJack said:

Thanks. 

This is just the type of loan I was expecting to get, if anything at all. We're both well aware of the risks and have every intention of repaying on time which would remove that particle hazard. 

I should explain in more detail:

My wife already has a government loan against the land. Since we took out the loan, my income has since been hit hard meaning we couldn't make the repayments. We've since moved out of Bangkok to slash our overheads and can balance the books again, but the government guy (sorry, I don't know the terminology) has already started legal proceedings. We have a month to find the outstanding money or the land will be sold, which is problematic for my wife considering it was passed down by family. 

Oh, and even though my income has taken a hit, it's still a reasonable amount. 

My situation gone well, I dealt with that loan via court. So maybe you need to do that.

[MarieFerrante]

37 minutes ago, MarieFerrante said:

 

My situation gone well, I dealt with that loan via court. So maybe you need to do that.

 

14 hours ago, MarieFerrante said:

I hope everything is ok with your loan nowadays. I had the same problem when I wanted to buy a used car and I bought it but I forgot to check about how it was buyed before. Purchase of the car was made by the loan and loan sharks were looking at that car because it was the only way to get money for the repayment so they scouted me and started asking me about repaying the loan for that car. I was really scared due to this situation so I called the police and they didn't help me at all.

 

On 1/11/2024 at 2:22 PM, AsparrownamedJack said:

Hi all.

We are trying to get a loan secured against land in Ubon Thani. the land was valued at approximately 385,000 baht about a year ago and we need a loan of about 200,000. 

My (Thai) wife has struggled because of reasons like the size and location of the land, and I was wondering if I get get the loan - secured by my wife's land - in my name. Or maybe somebody can recommend a legitimate finance company that will be happy to do business with my wife. And also we even searched down different loan companies to save our situations on this webpage https://triceloans.ph/lending-companies/. And I took loan and it really saved my ass.

                   

On 1/11/2024 at 2:22 PM, AsparrownamedJack said:

Thanks in advance. 

And I even took one loan to buy a house in Philippines.

Edited January 31 by MarieFerrante

[AsparrownamedJack]

Forgot to update. 

The loan has been completed and all is under control again. In the end my wife found somebody by posting in a local (Ubon) forum. 

One of the biggest hurdles was the Kai Fak agreement because apparently it takes a long time for them to release the land if you pay off the loan. But we got there.