Foreclosure Laws?

[peter2076]

I am not proud to see that I am foreclosing on a property my wife and I cannot afford. We paid to much for the property and we owe too much on the condo. We bought in a bad location, cannot rent it, and cannot sell it. The condo is way overpriced. We bought at a bad time. Now the building is offering cheaper condos that are bigger than ours and new.

My question is a legal one. What are the foreclosure laws in Thailand? Do we need a lawyer? Can the bank pursue other property that my wife has in her name? We did NOT put this property down as collateral.

Any legal information would be appreciated on how to foreclose properly and legally.

[InterestedObserver]

We did NOT put this property down as collateral.

If the property is not listed as loan collateral then how is it being foreclosed on? Are you saying that you can no longer afford to pay the property developer or are you talking about a bank mortgage? Who has the title deed (Chanote) for the condo?

Edited August 14, 2010 by InterestedObserver

[peter2076]

My wife's other property was not put down as collateral. The condo was, of course, the collateral held by the bank. I am just wondering if the bank can pursue further damages if the condo, or sale of it by them, does not pay off the loan. I do not know how foreclosures work in Thailand.

I know a new foreclosure law was passed in 2005. JFYI, we are no longer in Thailand but we may move back there someday and my wife still owns other property there that is paid off. In the USA, you can put a lien on property if someone owes you a chunk of money. Can a bank do that? We used UOB.

[InterestedObserver]

Thailand Civil and Commercial Code; Title XII, Mortgage; Chapter IV, Enforcement of Mortgage:

Section 733. If the estimated value of the property, in case of foreclosure, is or the net proceeds, in case of auction, are less than the amount due, the debtor of the obligation is not liable for the difference.

Edited August 14, 2010 by InterestedObserver

[peter2076]

Thanks!!

So that means I have nothing to worry about. Great! Thanks again!

Yes!!!! Section 733. If the estimated value of the property, in case of foreclosure, is or the net proceeds, in case of auction, are less than the amount due, the debtor of the obligation is not liable for the difference. Yes!!!!

I guess Banks are risk takers too!!

Edited August 14, 2010 by peter2076

[Benjie]

My wife's other property was not put down as collateral. The condo was, of course, the collateral held by the bank. I am just wondering if the bank can pursue further damages if the condo, or sale of it by them, does not pay off the loan. I do not know how foreclosures work in Thailand.

I know a new foreclosure law was passed in 2005. JFYI, we are no longer in Thailand but we may move back there someday and my wife still owns other property there that is paid off. In the USA, you can put a lien on property if someone owes you a chunk of money. Can a bank do that? We used UOB.

So you cant afford this property but have other properties?

How does that work, you make a bad investment decision, decide you want out and then I'm guessing all of those who can pay their mortgages off actually end up paying for it in the long run.

[powderpuff]

I believe the correct term is you are "defaulting" on your loan.

[InterestedObserver]

Thanks!!

So that means I have nothing to worry about. Great! Thanks again!

Yes!!!! Section 733. If the estimated value of the property, in case of foreclosure, is or the net proceeds, in case of auction, are less than the amount due, the debtor of the obligation is not liable for the difference. Yes!!!!

I guess Banks are risk takers too!!

I'd close all the wife's accounts with the mortgage holder (UOB). Were you asked to cosign per chance? Did you read the fine print on the mortgage agreement, cash accounts at the same bank are sometimes used for collateral also.

[peter2076]

Yes, we have taken all the money in our UOB accounts and transferred then to Bangkok Bank. Someone brought a good point. We are defaulting on the mortgage, not foreclosing. Are they the same thing?  Is there any fine line print here?<br><br>

[jethro66]

TGF father passed away earlier this year and since then local Cooperative has demanded payment of debt ( 50k baht)in full, even though we offered to pay by instalments , TGF mother has not yet transferred property to her name., is there any way co-op can take lien or repo property when debtor is deceased?

I dont believe he had made any repayments last few years.

[Khun Jean]

Thanks!!

So that means I have nothing to worry about. Great! Thanks again!

Yes!!!! Section 733. If the estimated value of the property, in case of foreclosure, is or the net proceeds, in case of auction, are less than the amount due, the debtor of the obligation is not liable for the difference. Yes!!!!

I guess Banks are risk takers too!!

Actually they are not on a mortgage, oke in Thailand they have 'some' risk unlike in the western world were they just create the money and charge you interest for it.

Never feel 'sorry' for a bank, the deal is you borrow money and pay interest or else they take possession of the house without actually having done anything that could be 'consideration'.

There are no morals in play only business. If it is not good business for you anymore you break the 'deal'.

They often raise and lower the interest without asking you, so why should you not have the option to pay or walk away.

The contract will mention what will happen and if not mentioned specifically general rules are applied. Like the one mentioned.

So read the contract first before making a decision.