Bank Foreclosures In Chiang Mai

[Sparkles]

My Thai wife and I are hoping to move to Chiang Mai in the near future and some real estate is a priority although we will rent first . In other areas such as Chiang Rai bank foreclosures are a viable option. Does anyone have any recent experiences in CM. We are looking for a house ,suitable for renovation on max 2 rai or just land not more than 25 kms out of C Mai. Any help would be appreciated

[john b good]

My Thai wife and I are hoping to move to Chiang Mai in the near future and some real estate is a priority although we will rent first . In other areas such as Chiang Rai bank foreclosures are a viable option. Does anyone have any recent experiences in CM. We are looking for a house ,suitable for renovation on max 2 rai or just land not more than 25 kms out of C Mai. Any help would be appreciated

From time to time the banks (I am speaking for Krung Thai, Bangkok Bank & Kasikorn) have all had displays in their branches show properties that they have taken over. Krung Thai was the last I saw.

They all still have a lot of property, some going back to 97. The thing to do is visit the various banks and ask the questions.

Edited September 22, 2008 by john b good

[brahmburgers]

judging from the photos I've seen in those displays, the majority of foreclosed properties are townhouses. You know the type; dirty white with mildew and thick electric wires all over the place. Am not surprised borrowers quit paying on 'em. I am a bit surprised that banks loaned on them though - I bet they're now sorry they did. Once in awhile there's a half-way decent looking house or some flat properties with no personality. yet, maybe you'll get lucky and find a gem among the dirt clods.

[lazeeboy]

judging from the photos I've seen in those displays, the majority of foreclosed properties are townhouses. You know the type; dirty white with mildew and thick electric wires all over the place. Am not surprised borrowers quit paying on 'em. I am a bit surprised that banks loaned on them though - I bet they're now sorry they did. Once in awhile there's a half-way decent looking house or some flat properties with no personality. yet, maybe you'll get lucky and find a gem among the dirt clods.

the problem when banks sell repossessed houses they are normally run down ,in the wrong area ,anything thats any good is sold to the staffs family or friends

[noise]

My Thai wife and I are hoping to move to Chiang Mai in the near future and some real estate is a priority although we will rent first . In other areas such as Chiang Rai bank foreclosures are a viable option. Does anyone have any recent experiences in CM. We are looking for a house ,suitable for renovation on max 2 rai or just land not more than 25 kms out of C Mai. Any help would be appreciated

The Land & Houses Park Mae Jo (where I live) has lots of used houses for sale, all kinds, all sizes and styles. As brahmburgers sort of said, you may see overgrown yards and mildew inside and out if the house is unoccupied. But that is all cosmetic. A friend bought an "old" house that was not lived in, renovated it to his design, removing some interior walls, and ended up with a beautiful house worth more than a new one but costing less. And after he redid the yard, it is a show place, inside and out.

There are some unoccupied houses here that look like they must be in the 3000 - 4,000 sq ft range with very mature 40-50 foot trees on large lots. There are some that look around 2000-2500 sq ft with smaller, but mature, trees on smaller lots.

And there are lots of lots for sale so you could buy as many as you want and build as large a home as you desire without having to do without some of the big city amenities (e.g., ADSL, common grounds and facilities kept up by L&H, etc.).

Because of the use of only concrete and brick/block/plaster for construction, I personally think most of these houses will prove to be structurally sound. So, since you have already mentally accepted the hard work involved with renovation, I think you will have no trouble finding a house that has all the potential you need to be turned into a great home.

Edited September 23, 2008 by noise

[WinnieTheKhwai]

the problem when banks sell repossessed houses they are normally run down ,in the wrong area ,anything thats any good is sold to the staffs family or friends

That's exactly it. By going to banks you will be looking at the left-overs that nobody wanted. First would be the bank staff themselves, second their families and friends, and third any people in their network who have indicated to them to go look out for good properties, then the bank staff make a commission on that. Whatever's left after that gets posted on those boards at the bank office that you're looking at.

[Ajarn]

the problem when banks sell repossessed houses they are normally run down ,in the wrong area ,anything thats any good is sold to the staffs family or friends

That's exactly it. By going to banks you will be looking at the left-overs that nobody wanted. First would be the bank staff themselves, second their families and friends, and third any people in their network who have indicated to them to go look out for good properties, then the bank staff make a commission on that. Whatever's left after that gets posted on those boards at the bank office that you're looking at.

In your dreams

Plenty of proof that neither one of you know what you're talking about... Got any proof that you do??

[WinnieTheKhwai]

Feel free to check the offers available. (Either at the bank or on their websites; most banks offer these properties on their site as well, mostly in Thai but it's there).

I think you will find that the prices are far too high to be reasonable for what it is, or it's just not very attractive. (plain plots of land or dilapidated buildings) But again, don't let me stop you from checking out the offers.

[Ricardo]

When we were last looking, about 5 years ago, the SCB-branch in Tha Pae Road had 3 files full of 'opportunities'.

We put in a bid, on 4 adjacent plots, and their head-office came back to us with a total-price, which was 20% more than the sum of the individual prices ! For some reason ... they didn't make the sale.

[Greenside]

When we were last looking, about 5 years ago, the SCB-branch in Tha Pae Road had 3 files full of 'opportunities'.

We put in a bid, on 4 adjacent plots, and their head-office came back to us with a total-price, which was 20% more than the sum of the individual prices ! For some reason ... they didn't make the sale.

There was a big event at Airport Plaza about a week or so ago with about ten banks showing their repo's. I think this happens once or twice or year. Didn't see anything that looked very exciting though.

[Sparkles]

When we were last looking, about 5 years ago, the SCB-branch in Tha Pae Road had 3 files full of 'opportunities'.

We put in a bid, on 4 adjacent plots, and their head-office came back to us with a total-price, which was 20% more than the sum of the individual prices ! For some reason ... they didn't make the sale.

There was a big event at Airport Plaza about a week or so ago with about ten banks showing their repo's. I think this happens once or twice or year. Didn't see anything that looked very exciting though.

Thanks for all the imput guys.Guess its a matter of rent first and then do the rounds. Renovating a neglected propert doesnt faze me ,as long as is structually sound,You can finish up with want you want at a far lower cost than new and frankly have not seen many new Thai houses I would choose to buy anyway. City houses on rural blocks seems illogical to me. Thanks again to al.

[Bill97]

How can you know if it is structurally sound?

[jaideeguy]

All the [major] banks have catalogues of their forclosures and they keep growing larger with these hard times and the 'sub-prime' lending practices of the Thai banks.

We tried the forclosure route several years ago and viewed many 'fixer-uppers' that were do-able and finally settled on a shell of a house that we wanted to finish to our own standards and the upset price was fair enough. So we went to the auction, paid the 20kTHB deposit [refundable] to bid and when our number came up, we put in a bid for the upset price and someone immediately entered another bid at 25% higher. I asked my bank officer friend who that was and she tole me it was the bank bidding against me. This is the way they do auctions in Thailand??

At that point, i gathered the wife and deposit and walked out.

Just my experience........

and don't forget, it's a buyer's market out there..the banks have way too much inventory.....but they still shoot themselves in the foot.

Edited September 27, 2008 by jaideeguy

[Greenside]

How can you know if it is structurally sound?

Push it quite hard and if it doesn't fall down it's probably as good as you're going to get.

In the absence of proper surveys or building techniques that's as good a way as any and given the standards of installation of the very basic things like plumbing, electrics and drainage I'd be surprised if the difference between renovating and starting from scratch or buying newish is worth the hassle.

Another thought: do market forces really prevail here in Thailand? It seems to me that unless there's a complete meltdown, many sellers doggedly stick to their version of what something is worth without regard for market forces. No-one wants to rent your house because all the others in the area are more attractive/cheaper? Never mind, just bump up the price to include the "lost" rental - that's bound to do the trick...

Edited September 27, 2008 by Greenside

[slapout]

There are some real horror stories on the auctions and the bank bidding against the real bidders. The banks may even hold the auction several times, with new bids accepted each time. The banks also seem to be quite dodgey on what they indicate they will loan vs what they will loan after you submit winning bid. Welcome to the business world of Thailand. Ask the bank to see a history of payment against a foreclosure, orginal loan, and foreclosure price set by bank, talk about creative book keeping, if they even show you the documents.

[hardy1943]

the problem when banks sell repossessed houses they are normally run down ,in the wrong area ,anything thats any good is sold to the staffs family or friends

That's exactly it. By going to banks you will be looking at the left-overs that nobody wanted. First would be the bank staff themselves, second their families and friends, and third any people in their network who have indicated to them to go look out for good properties, then the bank staff make a commission on that. Whatever's left after that gets posted on those boards at the bank office that you're looking at.

Went to a bank with my Thai wife, house was listed for 1.2 mill.inside the bank with picture, knew the house

and was interested in it and had the cash. Was told to wait for 5 minutes while they where discussing it in the back room.

When they returned, was told it went up to 1.4 million. Asked if anyone there could read English and told them

that I do not have stupid written on my forehead and laughed at their faces and walked out.

This was 3 years ago, house is still on market, now worthless, most of the roof is gone, all windows gone and copper wires

stripped. Thai reasoning. Amazing

[noise]

the problem when banks sell repossessed houses they are normally run down ,in the wrong area ,anything thats any good is sold to the staffs family or friends

That's exactly it. By going to banks you will be looking at the left-overs that nobody wanted. First would be the bank staff themselves, second their families and friends, and third any people in their network who have indicated to them to go look out for good properties, then the bank staff make a commission on that. Whatever's left after that gets posted on those boards at the bank office that you're looking at.

Went to a bank with my Thai wife, house was listed for 1.2 mill.inside the bank with picture, knew the house

and was interested in it and had the cash. Was told to wait for 5 minutes while they where discussing it in the back room.

When they returned, was told it went up to 1.4 million. Asked if anyone there could read English and told them

that I do not have stupid written on my forehead and laughed at their faces and walked out.

This was 3 years ago, house is still on market, now worthless, most of the roof is gone, all windows gone and copper wires

stripped. Thai reasoning. Amazing

Was your story shortened for effect or did you actually not even try to negotiate?

[Sparkles]

How can you know if it is structurally sound?

I would imagine that in Chiang Mai there would be several enginers who would have enough experience to give an opinion on a single dwelling. We are not talking high rise !

[slapout]

You can make a inspection of the property and bring along a builder, engineer???,etc. The water and electric are normally disconnected (non payment) so about all you can check for are items like water stains (roof/window leaks) cracks in walls, termite damage, etc. Many of the structures are stripped of doors, windows, light fixtures screens etc as well as having water damage to ceiling due to roof leaking, so cost to bring back to liveable can be quite high.

[Bill97]

How can you know if it is structurally sound?

I would imagine that in Chiang Mai there would be several enginers who would have enough experience to give an opinion on a single dwelling. We are not talking high rise !

Good imagination. And these guys are going to be able to tell how much rebar and what strength rebar is in the foundation, posts and beams; and the quality of the concrete? But as you say, we are not talking high rise so we can imagine that if it falls it won't hurt much?

[jaideeguy]

Another recent story about repo houses........the house across the street from us had a couple of agents that the bank authorized to sell before going up for auction...some friends made a full price offer and put down a deposit with the bank....then along came the real owner and he said 'what's up??' and it turns out that the bank put the for sale sign on the wrong house and lot. Only in LOS????

Who can you trust here???/no one when it comes to big baht!!!!!

[Loaded]

Another recent story about repo houses........the house across the street from us had a couple of agents that the bank authorized to sell before going up for auction...some friends made a full price offer and put down a deposit with the bank....then along came the real owner and he said 'what's up??' and it turns out that the bank put the for sale sign on the wrong house and lot. Only in LOS????

Who can you trust here???/no one when it comes to big baht!!!!!

I heard Nakhon Ping bridge is for sale

[Greenside]

I heard Nakhon Ping bridge is for sale

I think you've been misinformed. I bought it last week along with the two underpasses on the Superhighway - please keep an eye out for the forthcoming toll booths.

[Rice_King]

the problem when banks sell repossessed houses they are normally run down ,in the wrong area ,anything thats any good is sold to the staffs family or friends

That's exactly it. By going to banks you will be looking at the left-overs that nobody wanted. First would be the bank staff themselves, second their families and friends, and third any people in their network who have indicated to them to go look out for good properties, then the bank staff make a commission on that. Whatever's left after that gets posted on those boards at the bank office that you're looking at.

Went to a bank with my Thai wife, house was listed for 1.2 mill.inside the bank with picture, knew the house

and was interested in it and had the cash. Was told to wait for 5 minutes while they where discussing it in the back room.

When they returned, was told it went up to 1.4 million. Asked if anyone there could read English and told them

that I do not have stupid written on my forehead and laughed at their faces and walked out.

This was 3 years ago, house is still on market, now worthless, most of the roof is gone, all windows gone and copper wires

stripped. Thai reasoning. Amazing

Was your story shortened for effect or did you actually not even try to negotiate?

If this story is true, and I'm certainly not doubting that it is, then why should anyone have to "negotiate" when the asking price was clearly displayed? This was a bank, not the Night Bazaar.

[noise]

'noise' post='2241823' date='2008-09-28 09:27:29' Was your story shortened for effect or did you actually not even try to negotiate?

If this story is true, and I'm certainly not doubting that it is, then why should anyone have to "negotiate" when the asking price was clearly displayed? This was a bank, not the Night Bazaar.

Rice King (still here?)....yes, but.... would depend on how much he/they liked the house. Really like it, really want it, doesn't hurt to ask why the price change and make a counter offer. If only "interested" because the price seemed low (and not that interested, at that), then maybe not worth the effort.

[Sparkles]

How can you know if it is structurally sound?

I would imagine that in Chiang Mai there would be several enginers who would have enough experience to give an opinion on a single dwelling. We are not talking high rise !

Good imagination. And these guys are going to be able to tell how much rebar and what strength rebar is in the foundation, posts and beams; and the quality of the concrete? But as you say, we are not talking high rise so we can imagine that if it falls it won't hurt much?

Well if we follow your rational 99.9% of people in Thailand are living in danger of their houses falling down. Hands up all those who checked the quality of their concrete as it was poured. Seems we are in danger of drowning is a sea of negativity here and I thought this thread would be an interesting topic for people to relate their experiences of actually doing it.

[idrankwhat]

My wife is a real estate lawyer and the banks send her a book of foreclosed properties. She said if you go to the bank they will have postings on a board of foreclosed properties also she said if you ask them for a book they will give it to you.

[SurichTan]

My Thai wife and I are hoping to move to Chiang Mai in the near future and some real estate is a priority although we will rent first . In other areas such as Chiang Rai bank foreclosures are a viable option. Does anyone have any recent experiences in CM. We are looking for a house ,suitable for renovation on max 2 rai or just land not more than 25 kms out of C Mai. Any help would be appreciated

Try this http://www.uob.co.th/uobproperties/english...amp;searchcond=

Good luck.

Surich