Buying Bank Repossessions: Any Pointers

[tefoff]

Hi me and my girl are looking to buy a 10 year old condo or small townhouse, somewhere in Bangkok, preferably near the BTS or MRT. We have a limited budget though, we are looking around the 1.5 million range. So, to make our budget go further I'm just wondering if anyone has any advice or pointers about buying property auctioned off by banks, because their customers couldn't keep up on the payments. I'm a total novice in this area and I would appreciate any advice that's going: who to get in touch with, where do they advertise auctions for repossessions, agents who specialise in this area, potential hazards, stuff like that.

Also, we have 500,000 baht in cash, so we will be needing a loan for a million, so I'm wondering if that would complicate things, becasue I assume banks want to sell their repossesions for cash if possible, rather than take on more loans. Thanks beforehand, for any advice that's going.

[torrenova]

My understanding is that banks actually offer more favourable terms to people buying their property, lower fees and a higher loan to value are two I know of.

There is one bank (at least) with all this on their website but I cannot remember which one.

Are you Thai ? don't think you'll be getting a mortgage if not. Has your girl a stable income of about 3 times the mortgage payments and no other debts ? tax forms, bank book history etc.

Get the loan sorted out first as you will lose your deposit if you go to auction and cannot complete. From their website information, it seems to me that they try to help out in these cases but I would be wary of the property being overpriced and you "losing" out this way.

[wadsy]

Hi me and my girl are looking to buy a 10 year old condo or small townhouse, somewhere in Bangkok, preferably near the BTS or MRT. We have a limited budget though, we are looking around the 1.5 million range. So, to make our budget go further I'm just wondering if anyone has any advice or pointers about buying property auctioned off by banks, because their customers couldn't keep up on the payments. I'm a total novice in this area and I would appreciate any advice that's going: who to get in touch with, where do they advertise auctions for repossessions, agents who specialise in this area, potential hazards, stuff like that.

Also, we have 500,000 baht in cash, so we will be needing a loan for a million, so I'm wondering if that would complicate things, becasue I assume banks want to sell their repossesions for cash if possible, rather than take on more loans. Thanks beforehand, for any advice that's going.

If you buy a condo that a bank has taken over and it is in the banks name, then the bank would have paid the outstanding condo management fees (they have to do that to get the chanote transferred into their name) but the price will reflect this no doubt. If you do buy at auction, usually by the LED (Legal Exceution Department) the final price might be low BUT you, the now new owner will have to pay the oustanding condo fees, which in some instances are large. For example, we looked at a condo that was 90 sqm and was going to come in at auction at around 450,000. Add a couple of hundred for renovation, seemed like still a good deal. BUT..... the condo fees hadn't been paid for 18 years though and were in the vicinity of 270,000 baht when we checked with the Land Office!!!!

So I guess the moral to the story is do your homework, if you buy off a bank, check the chanote, make sure its in the banks name, go to the Land Department with a copy of the chanote, they will tell you free of charge what the expected transfer fees will be and remember there will be no 50/50 sharing of the transfer as far as the bank is concerned, you will have to cough up the lot.

You will also not get a loan if the condo is in your (the falang's) name as 1. You will not get a bank to loan you the money and 2. you will need a Thor Tor Sam certificate from the bank to show that all the monies for the condo purchase came from abroad. If you are buying in your girls name, as torrenova pointed out, she will need a ###### good job to get a loan.

Happy condo hunting.......

[Phrakhanong]

If you go to the Bangkok Bank website, they have a property listing where they list properties that they have presumably repossessed. It's all in Thai though, so you will need to get your girl to translate. Prices seem quite attractive though.

I've also noticed some of the Bangkok Bank branches out in the provincial capitals have notice boards advertising properties... once again, attractive prices.

[Oleg_Rus]

the scb is pretty big with non perf. loans on pr'ty. also nice offers for rep's.

get in touch with them at hq, nice and helping ppl there.

500k is more than enough, but why aim for 1.5mil if you can get better ?

good luck keep posting

[tefoff]

Thanks for all the advice,

My girlfriend's income is around the 10,000 to 15,000 range, and she has no debts. We are going to keep our feet on the ground, because we saw one bank property advertised for 1.3million, but when she contacted them, it turned out that was an old ad, and they were now looking for 2.13million. We knew at the time it was too good to be true, but we got our hopes up anyway.

[Bentley 7]

This coming weekend at Queen Siriat Convention Centre I believe they have an expo from all the banks repossessed properties up for sale. Maybe consider going and taking a look.

[tefoff]

Thanks for that Bentley 7,

That sounds like a good idea.

[Thaicoon]

I have bought Property from the SCB, they give a good deal. here is the link, but in Thai.

http://property.scb.co.th/LocatSrc.asp

Or just go into one of there big branches in Bangkok and ask to see the property portfoilio, for sale, that is the best way, in Buriram they no longer have this, you have to go to Korat.

[tefoff]

Thanks for that Thaicoon.

[Heng]

posted this before... but here it is again:

********

Here are a few links copied from my own favorites. First off though, you have to make sure you *trust your husband or wife* (step 1), especially if you're a foreigner and not purchasing a condo. Yeah, common sense, but an awful lot of people seem to SKIP over that part and jump right into *purchasing capital assets* (for most folks, that's usually around step 3 or 4).

http://properties.gsb.or.th/

http://www.kasikornbank.com/PropertyForSal...1,2098,,00.html

http://www.cb.ktb.co.th/prod/property.nsf

http://www.krungsriproperty.com/

http://property.scib.co.th/property/index.asp

http://property.scb.co.th/

http://www.tmbhome.com/index.asp

http://www.thanachart.com/nfsasset/index.asp

http://www.uob.co.th/uobproperties/index.php

http://www.led.go.th/th/default_th.asp

[Thaicoon]

posted this before... but here it is again:

********

Here are a few links copied from my own favorites. First off though, you have to make sure you *trust your husband or wife* (step 1), especially if you're a foreigner and not purchasing a condo. Yeah, common sense, but an awful lot of people seem to SKIP over that part and jump right into *purchasing capital assets* (for most folks, that's usually around step 3 or 4).

http://properties.gsb.or.th/

http://www.kasikornbank.com/PropertyForSal...1,2098,,00.html

http://www.cb.ktb.co.th/prod/property.nsf

http://www.krungsriproperty.com/

http://property.scib.co.th/property/index.asp

http://property.scb.co.th/

http://www.tmbhome.com/index.asp

http://www.thanachart.com/nfsasset/index.asp

http://www.uob.co.th/uobproperties/index.php

http://www.led.go.th/th/default_th.asp

Thanks Heng,

[Heng]

No worries.

[tefoff]

Thanks Heng, I know what you mean about the trust issue, it's especially pertinent at the moment, with what's happened with Stephen Jones and his 17 million baht.