Sorting The Lies From The Truth.

[patya dan]

Does anybody have any information regarding obtaining a mortgage in Thailand.

I am willing to give my girl a large deposit on a mortgage for a shop house but would rather not give her 100% and let her pay cash. We are currently renting the building.

She is filling my head with stories about how the current owner will not send her a copy of the title to take to the bank so that she can apply for a loan. She says that if she was to get a mortgage then the current owner would need to agree with the bank to repurchase the property in the event of her defaulting on the loan. And that the current owner is not willing to do this and will only accept cash..

Is she trying to spin me a yarn to separate me from my money or is she on the level?

All help and experiences appreciated.

[Boh Bpen Yang]

Does anybody have any information regarding obtaining a mortgage in Thailand.

I am willing to give my girl a large deposit on a mortgage for a shop house but would rather not give her 100% and let her pay cash. We are currently renting the building.

She is filling my head with stories about how the current owner will not send her a copy of the title to take to the bank so that she can apply for a loan. She says that if she was to get a mortgage then the current owner would need to agree with the bank to repurchase the property in the event of her defaulting on the loan. And that the current owner is not willing to do this and will only accept cash..

Is she trying to spin me a yarn to separate me from my money or is she on the level?

All help and experiences appreciated.

<{POST_SNAPBACK}>

Get an Attorney

[somtaamgaiyang]

Never rely on your girlfriend or wife to sort out these things. Do it yourself, and you may get to the bottom of the truth

[astral]

Is she trying to spin me a yarn to separate me from my money or is she on the level?

<{POST_SNAPBACK}>

It could be either.

Some Thais are not very business oriented and have funny ways of looking at things.

The seller may fear you will defraud him if you get a copy of the deed, heaven know how.

I had a copy of my deeds before the company bought the house.

The bank will definitely want to see it, to know there are no other loans outstanding

before committing themselves.

I suggest you talk to a lawyer, of your choice.

You need someone reliable to guide you, especially before anything is signed.

For example your loan, cannot be registered against the property as you are a foreigner.

[Boh Bpen Yang]

Never rely on your girlfriend or wife to sort out these things.  Do it yourself, and you may get to the bottom of the truth

<{POST_SNAPBACK}>

Absolutely, positively never buy property without an attorney!! You may buy something that the seller doesn't own. Even if it is a reposessed property you are purchasing from a bank, they may not have done title searches (or a miriad of other complications) especially in regards to level 3 registrations.

[lopburi3]

Does anybody have any information regarding obtaining a mortgage in Thailand.

I am willing to give my girl a large deposit on a mortgage for a shop house but would rather not give her 100% and let her pay cash. We are currently renting the building.

She is filling my head with stories about how the current owner will not send her a copy of the title to take to the bank so that she can apply for a loan. She says that if she was to get a mortgage then the current owner would need to agree with the bank to repurchase the property in the event of her defaulting on the loan. And that the current owner is not willing to do this and will only accept cash..

Is she trying to spin me a yarn to separate me from my money or is she on the level?

All help and experiences appreciated.

<{POST_SNAPBACK}>

I believe she is telling you like it is. There is likely no way a bank is going to loan money without a cosigner - even true for most auto loans here.

[Sulaphat]

Get a lawyer to help you.

Your gf may well be telling the truth, but you will want a title search done at the Land Department to make sure that the title deed is not encumbered or has a lein against it. Your gf probably can't do this, so get a lawyer who can and who can sort out any other legal details.

The bank will require a guarantor or co-signer. It will have to be someone that the bank considers creditworty (job, other attachable assets in Thailand).

Good luck!

[pieeyed]

Definitly get a lawyer involved. There is always alot of paper chasing to be done and unless you know where to go and speak fluent thai it could be very frustrating.

[Sumitr Man]

As this shop house is what the Thais love to call a "secondhand" house, there's a very good chance she is telling you the truth.

There are some very easy ways to get around this. The most popular, as has been suggested here already, is that you provide a guarantee for her debt. Whether or not the bank accepts this will very much depend on how long you have resided here and if you have a WP. Alternatively, Mum or Dad might be able to give this, if they're not considered too old (by the bank that is).

In all events, the bank obviously won't lend without seeing a copy of the land title deed first (the owner himself may have mortgaged the property - possibly following the recent European Championship )

Anyhow, if you want to speak to a British [LL.M. - Masters degree] educated, English speaking, Thai lawyer (graduated from Chula), let me know and I'll pm her number to you. Word of warning though, she's good - she's affordable, but she ain't cheap.

SM

[ryanb741]

As this shop house is what the Thais love to call a "secondhand" house, there's a very good chance she is telling you the truth. 

There are some very easy ways to get around this.  The most popular, as has been suggested here already, is that you provide a guarantee for her debt.  Whether or not the bank accepts this will very much depend on how long you have resided here and if you have a WP.  Alternatively, Mum or Dad might be able to give this, if they're not considered too old (by the bank that is).

In all events, the bank obviously won't lend without seeing a copy of the land title deed first (the owner himself may have mortgaged the property - possibly following the recent European Championship  )

Anyhow, if you want to speak to a British [LL.M. - Masters degree] educated, English speaking, Thai lawyer (graduated from Chula), let me know and I'll pm her number to you.  Word of warning though, she's good - she's affordable, but she ain't cheap.

SM 

<{POST_SNAPBACK}>

[ryanb741]

Well my wife and I got a 5 million Baht mortgage no problem and we still both live in the UK. My wife's mum sorted it out (she is in the Thai government so I could try and find out how she managed it). We got ours on a 20 year mortgage with a 900000 downpayment.

[Sulaphat]

Well my wife and I got a 5 million Baht mortgage no problem and we still both live in the UK. My wife's mum sorted it out (she is in the Thai government so I could try and find out how she managed it). We got ours on a 20 year mortgage with a 900000 downpayment.

<{POST_SNAPBACK}>

I suspect she is at least the co-signer or guarantor, if not the primary borrower.

[dugdig]

Mortgage lenders in most countries have a similar principle: If we must forclose on the property we want to be able to dispose of it and still make a profit on the transaction. This means that either the down payment must be big enough to ensure their profit or a cosigner with either valuable property or income earning ability will sign. Thai banks just went through a period wher they failed to follow this principle and loaned money without good securty....this is the root of the Thai financial meltdown which happend in the '90s. Since then bank regulations have been strengthened to avoid a similar mistake.

[lopburi3]

Well my wife and I got a 5 million Baht mortgage no problem and we still both live in the UK. My wife's mum sorted it out (she is in the Thai government so I could try and find out how she managed it). We got ours on a 20 year mortgage with a 900000 downpayment.

<{POST_SNAPBACK}>

I suspect she is at least the co-signer or guarantor, if not the primary borrower.

<{POST_SNAPBACK}>

Or it was bought from the builder who acts as the guarantor.

[snoophound]

So does anyone know what is the lending crtiteria on both commercial and res property in thailand??

[Sumitr Man]

Since then bank regulations have been strengthened to avoid a similar mistake.

You jest, surely

[phormio]

Well my wife and I got a 5 million Baht mortgage no problem and we still both live in the UK. My wife's mum sorted it out (she is in the Thai government so I could try and find out how she managed it). We got ours on a 20 year mortgage with a 900000 downpayment.

<{POST_SNAPBACK}>

Not bad, an 18% down payment. Curious - what was the interest rate and was it a fixed or a variable rate?

What's the monthly payment (in baht ) and can you pay off the loan early?

Mortgage lenders in most countries have a similar principle:  If we must forclose on the property we want to be able to dispose of it  and still make a profit on the transaction.  This means that either the down payment must be big enough to ensure their profit or a cosigner with either valuable property or income earning ability will sign.  Thai banks just went through a period wher they failed to follow this principle and loaned money without good securty....this is the root of the Thai financial meltdown which happend in the '90s.  Since then bank regulations have been strengthened to avoid a similar mistake.

<{POST_SNAPBACK}>

I was under the impression that back before the crash the builders required individual unit buyers to put up the entire purchase price(which may have been borrowed) before construction has begun. This was/is particularly true for developers of multi-residence housing areas or condo complexes. Unfortunately many builders went bust in the crash and those that put up 100% in advance, a lot of people, got completely screwed. Do things still work this way?

[ryanb741]

It was a fixed rate (can't remember what exactly - the wife's family looked after that. My wife paid another 2 million baht in a lump sum so there is now 1.9 million left and we are now paying 11,500 per month (from 20,000 previously). As I currently work in the UK (as does my wife), this is nothing, so when we move to LOS in a couple of years hopefully it will all be paid off.