onnut Posted February 11, 2011 Share Posted February 11, 2011 just a quicky I am leaving Thailand with my wife and Child for a better education for the little man. I have had bad luck in work over the last 18 months and its not going to get better so we cant afford one here for him. our house has been on the market for 18 months and we have not had any luck. the price is as low as we can go without still owing to the bank. I will not be able to afford the morgage when we get back to the UK. we have talked to the bank to see there views and was told its our problem. what is the worst case if we just go to the UK and default on payments? this is a serious question as it looks like this is our only option at the moment. Link to comment Share on other sites More sharing options...
craigt3365 Posted February 11, 2011 Share Posted February 11, 2011 Can't answer your question, but best of luck. Seriously... Link to comment Share on other sites More sharing options...
actiondell4 Posted February 11, 2011 Share Posted February 11, 2011 Cant you rent out the house whilst you are away in the UK,then you can bring in the rental income to pay the mortgage. Worst case scenario is they,the bank,will sell the house with what they can get for it. If its under what you owe,then you end up owing them money. Dont worry too much,im sure the banks have many of there relatives notified when mortgagee sales are going on,so should sell quick. Link to comment Share on other sites More sharing options...
robblok Posted February 11, 2011 Share Posted February 11, 2011 they might pursue you all the way to England. Its not like you are in hiding there. Its easy to find you and all the cost will ad to the debt. They might not but you never know. Link to comment Share on other sites More sharing options...
cardholder Posted February 11, 2011 Share Posted February 11, 2011 they might pursue you all the way to England. Its not like you are in hiding there. Its easy to find you and all the cost will ad to the debt. They might not but you never know. most unlikely. If you can't sell then the asking price is too high for the current market. You are unlikely to be able to raise more than the debt so give the keys back to the bank - the Thais do it all the time. Actually, give the keys back through a friend (with a covering letter). The Thai bank will not persue you (your wife, as I presume it was in her name). Start afresh in England where it is even harder to make ends meet. Good luck in finding a job - then you may just be OK. Link to comment Share on other sites More sharing options...
Norcan Posted February 11, 2011 Share Posted February 11, 2011 just a quicky I am leaving Thailand with my wife and Child for a better education for the little man. I have had bad luck in work over the last 18 months and its not going to get better so we cant afford one here for him. our house has been on the market for 18 months and we have not had any luck. the price is as low as we can go without still owing to the bank. I will not be able to afford the morgage when we get back to the UK. we have talked to the bank to see there views and was told its our problem. what is the worst case if we just go to the UK and default on payments? this is a serious question as it looks like this is our only option at the moment. Hi M. You should know who I am, I got rid of your stench one Xmas at MM about 4 yrs ago. I'll see you Weds (if you're still working at The C). I'm only round the corner from your house, if theres anything I can do...let me know. Gentlemen...the OP is a good friend of mine and will be Thailands loss. Sorry to hear you are leaving. I will never forget your generosity when I was in the poo that time and you are probably the reason I am still here. I can't express how grateful I will always be. Let me know when & where the pi$$ up will be. Cheers, P. Link to comment Share on other sites More sharing options...
onnut Posted February 11, 2011 Author Share Posted February 11, 2011 Cheers P. I am leaving because I really can't afford a good education for my son by staying in Thailand and we have both decided to try life in the UK. I will find a job but don't think I can stretch to paying for a mortgage in Thailand as well. So this is why I ask. I have no qualms about walking away from the house. It would be nice to sell though. It is already for sale at 1.5 million less than it's valued at. I just would like to know what come backs I could expect. Giving the keys back with a letter is a good idea I suppose. Bit of a crap situation to be in I suppose but that's life! Link to comment Share on other sites More sharing options...
robblok Posted February 11, 2011 Share Posted February 11, 2011 Cheers P. I am leaving because I really can't afford a good education for my son by staying in Thailand and we have both decided to try life in the UK. I will find a job but don't think I can stretch to paying for a mortgage in Thailand as well. So this is why I ask. I have no qualms about walking away from the house. It would be nice to sell though. It is already for sale at 1.5 million less than it's valued at. I just would like to know what come backs I could expect. Giving the keys back with a letter is a good idea I suppose. Bit of a crap situation to be in I suppose but that's life! How much are you selling it for.. just out of curiosity Link to comment Share on other sites More sharing options...
onnut Posted February 11, 2011 Author Share Posted February 11, 2011 4.6 would be the magic number. It's been valued at 6 which is high I think for the area. 101/1. Link to comment Share on other sites More sharing options...
robblok Posted February 11, 2011 Share Posted February 11, 2011 4.6 would be the magic number. It's been valued at 6 which is high I think for the area. 101/1. Problem is i think that the thais dont like to buy second hand houses. I might have to sell my home too. I want to buy a new one in the future bigger. Link to comment Share on other sites More sharing options...
onnut Posted February 11, 2011 Author Share Posted February 11, 2011 4.6 would be the magic number. It's been valued at 6 which is high I think for the area. 101/1. Problem is i think that the thais dont like to buy second hand houses. I might have to sell my home too. I want to buy a new one in the future bigger. Good for you. I'm only 35 so have plenty of time to start over. Link to comment Share on other sites More sharing options...
robblok Posted February 11, 2011 Share Posted February 11, 2011 4.6 would be the magic number. It's been valued at 6 which is high I think for the area. 101/1. Problem is i think that the thais dont like to buy second hand houses. I might have to sell my home too. I want to buy a new one in the future bigger. Good for you. I'm only 35 so have plenty of time to start over. im 36 already old. But i hope you sell it and i hope the wont hound your wife. Link to comment Share on other sites More sharing options...
StreetCowboy Posted February 11, 2011 Share Posted February 11, 2011 Cheers P. I am leaving because I really can't afford a good education for my son by staying in Thailand and we have both decided to try life in the UK. I will find a job but don't think I can stretch to paying for a mortgage in Thailand as well. So this is why I ask. I have no qualms about walking away from the house. It would be nice to sell though. It is already for sale at 1.5 million less than it's valued at. I just would like to know what come backs I could expect. Giving the keys back with a letter is a good idea I suppose. Bit of a crap situation to be in I suppose but that's life! THere may be unforseen consequences in the future; I imagine that your wife is Thai (possibly an over-vivid imagination) and therefore you or she might choose to come back here from time to time. It would be surprising, but even more so distressing, to find yourself clapped in irons for outstanding debts at the airport. So I would recommend taking professional advice, rather than relying on anonymous strangers. I always recommend this, when people are proposing doing something illegal... and I am not sure where the boundary is between civil and criminal in your case... SC Link to comment Share on other sites More sharing options...
MAJIC Posted February 11, 2011 Share Posted February 11, 2011 (edited) Im sure you have thought about Renting your House out when you return to the UK,would this not go some way to easing the problem for now. until you are in better financial position? Anyway the very best of Luck to you and your Family in the UK,im sure you will be fine. MAJIC. Edited February 11, 2011 by MAJIC Link to comment Share on other sites More sharing options...
rickthailand Posted February 11, 2011 Share Posted February 11, 2011 i think renting out your house is a win win solution good luck Link to comment Share on other sites More sharing options...
NanLaew Posted February 11, 2011 Share Posted February 11, 2011 So has the OP looked at the rental option? Bad credit was easier to walk away from 20 years ago. Would be a bugger to have this come back and bite your in say, 20 years time when the boy has graduated and you and the better half come back to retire. Link to comment Share on other sites More sharing options...
7by7 Posted February 11, 2011 Share Posted February 11, 2011 Nonsense posts and comments on them have been removed. Link to comment Share on other sites More sharing options...
WAYNEandAEI Posted February 11, 2011 Share Posted February 11, 2011 OP - Which area is the home in?? Is it an area where rentals are in damand?? Link to comment Share on other sites More sharing options...
gregb Posted February 12, 2011 Share Posted February 12, 2011 Keep in mind it will take 12 months or longer to complete a foreclosure, so you still have time to sell it. Just leave the keys with a real estate agent who can show the house when you are not around. Unfortunately, the housing market is still depressed for mid priced homes such as yours. It may take awhile. Otherwise, your wife's credit will get dinged (and yours assuming you are the cosigner), and you both can be taken to court by the bank, but only after the bank forecloses and the sells the house so they can establish the extent of the damages. Typically, this is not done at all. The banks simply keep the houses on the books rather than selling them at a loss, so aside from the poor credit, that is really the end of it. They could in theory try and pursue you in England, but the Thai civil court judgements can't be enforced in England, and an English court doesn't have jurisdiction over a Thai contract, so if your wife has no further assets in Thailand for the bank to attach, then there is really nothing they could do beyond writing you letters saying you have been a bad boy. Possibly setting a toothless collection agency on you. The exception to this is if you have done something criminal. Under those circumstances, they could petition the foreign court to recognize the Thai court judgement, and then you'd be in a world of hurt. However, for a 6 million baht house, pursuing you to England is not going to be a practical solution. It's just not worth it to them. Remove all your assets from Thailand, and the only side effect will be busted credit over here. They'll take the house, and that will be that. Unless you plan on returning to Thailand soon, I can't see where this will impact your life. Sorry to hear about your problems. Best of luck restarting your life over there. Hope it works out for you. Link to comment Share on other sites More sharing options...
pjclark1 Posted February 12, 2011 Share Posted February 12, 2011 (edited) Cheers P. I am leaving because I really can't afford a good education for my son by staying in Thailand and we have both decided to try life in the UK. I will find a job but don't think I can stretch to paying for a mortgage in Thailand as well. So this is why I ask. I have no qualms about walking away from the house. It would be nice to sell though. It is already for sale at 1.5 million less than it's valued at. I just would like to know what come backs I could expect. Giving the keys back with a letter is a good idea I suppose. Bit of a crap situation to be in I suppose but that's life! What will happen is this. If the house is registered as your wife's (which I assume it is) and there is a different Thai guarantor (there often is) Then they will both be chased for the foreseeable future (at least 10 years) The banks don't chase very hard (but they also don't bother to sell the house either and let the debt increase) but will track the Thais using their Tabian Ban address sending them both a bill for the outstanding amount each year. If there any assets in bank accounts held by these Thais, they will be seized, any land, cars or motorcycles held in their names will be confiscated and sold. Not only now, but in the future. (also tracked through the official blue book address) Yes, there are many Thais that go this route, but they tend to never own anything of value again. Edited February 12, 2011 by pjclark1 Link to comment Share on other sites More sharing options...
Berkshire Posted February 12, 2011 Share Posted February 12, 2011 Keep in mind it will take 12 months or longer to complete a foreclosure, so you still have time to sell it. Just leave the keys with a real estate agent who can show the house when you are not around. Unfortunately, the housing market is still depressed for mid priced homes such as yours. It may take awhile. Otherwise, your wife's credit will get dinged (and yours assuming you are the cosigner), and you both can be taken to court by the bank, but only after the bank forecloses and the sells the house so they can establish the extent of the damages. Typically, this is not done at all. The banks simply keep the houses on the books rather than selling them at a loss, so aside from the poor credit, that is really the end of it. They could in theory try and pursue you in England, but the Thai civil court judgements can't be enforced in England, and an English court doesn't have jurisdiction over a Thai contract, so if your wife has no further assets in Thailand for the bank to attach, then there is really nothing they could do beyond writing you letters saying you have been a bad boy. Possibly setting a toothless collection agency on you. The exception to this is if you have done something criminal. Under those circumstances, they could petition the foreign court to recognize the Thai court judgement, and then you'd be in a world of hurt. However, for a 6 million baht house, pursuing you to England is not going to be a practical solution. It's just not worth it to them. Remove all your assets from Thailand, and the only side effect will be busted credit over here. They'll take the house, and that will be that. Unless you plan on returning to Thailand soon, I can't see where this will impact your life. Sorry to hear about your problems. Best of luck restarting your life over there. Hope it works out for you. Pretty much agree. To the OP: Who co-signed the loan? Normally, a Thai would have to co-sign the loan, which I assume is under your wife's name. If, say, your wife's sister co-signed the loan, she may be on the hook. Anyways, good luck. As someone mentioned, it's difficult to sell a home in that price range because Thais generally prefer new homes over 2nd hand. Only possibility is newbie farang. Link to comment Share on other sites More sharing options...
stander Posted February 12, 2011 Share Posted February 12, 2011 (edited) I feel for you and your circumstances, but defaulting on a mortgage here can have relatively serious consequences. I heard recently of a farang who returned to Thailand with his family 10 years after leaving with many outstanding debts, including a mortgage, his wife ended up having her passport revoked and she is now stuck here staying with family until the debts are settled Edited February 12, 2011 by stander Link to comment Share on other sites More sharing options...
dindong Posted February 12, 2011 Share Posted February 12, 2011 If you cannot rent your house, then your only alternative is to sell the house at the best possible price, negotiate a settlement price with the bank and arrange payment for any balance you owe them. If the bank sells your property, they will wait until they get a big price and will add a high interest in the meantime, costing you a considerable amount more money. Get someone with a good standing in your community to negotiate with the bank. Link to comment Share on other sites More sharing options...
theoldgit Posted February 12, 2011 Share Posted February 12, 2011 I really do feel for you onnut, I know you are going through hell and I wish you all the best in the UK. A number of people have suggested renting it it out, maybe for little more that the mortgage payments, if things improved you might possibly want to return to Thailand. Is it advertised on Thaivisa? you never know. Could it be feasible to try and find someone who could take over the house and continue the mortgage payments to the bank, this might be better than defaulting and could protect your wife's credit rating, obviously with some sort of protection in place for a possible buyer and yourselves. I am really just thinking aloud, I'm sure you have thought of all the options and I'm not sure if the bank would allow anyway. As I say I really do feel for you and yours, I really hope things get better for you and your loved ones. Link to comment Share on other sites More sharing options...
jackr Posted February 12, 2011 Share Posted February 12, 2011 Renting out that house is surely the way to go... at least give the Classifieds here a try for sale or rent. Is there any chance you could move elsewhere in Muang Thai and do your work? Chiang Mai, for example, is cheaper to live and there are many cheaper schooling options. Regards schooling in the UK, I really wouldn't want to inflict state school on the nipper even though it's free, unless as a last resort! For a decent education, one would need to go public / boarding, and even then it's largely down to the kid I guess. Get him in a half-decent school here and to read books at home. Link to comment Share on other sites More sharing options...
Forethat Posted February 12, 2011 Share Posted February 12, 2011 With my rather exclusive and probably rare insight in Thai credit processing, backoffice operations and foreclosures in mind, the OP should take my (and everyone elses) advice and make sure you find a solution to this situation. Do not abandon the arrangement which will only result in a foreclosure and substantial financial loss. The problem here is that Thai civil asset forfeiture laws allows the lender to seize property used as collateral without charging anyone with a crime, effectively keeping the issue a private matter. If you cant pay the mortgage, sell or let the property. If that doesn't do it, make sure you talk to the bank to find a solution. Link to comment Share on other sites More sharing options...
thaimate Posted February 12, 2011 Share Posted February 12, 2011 I feel very sorry for your predicament and wish you well,but in my mind it just reinforces the old saying not to buy anything in Thailand that you cant walk away from. for myself and my familly we are well able to afford a house ,but would i buy ,never,and the resons are ,yours and the fact that houses are hard to sell ,there are some on our estate that are for sale fully furnished at the price they were built at 6 years ago and the occupiers cannot sell all the best and hope things get better for you in Britain ,at least thre is the old social security as a last resort Link to comment Share on other sites More sharing options...
MrMakMak Posted February 12, 2011 Share Posted February 12, 2011 (edited) can i get your accord? once i go back home i'll sell it and you can have the money if i can drive it for free for a couple months Edited February 12, 2011 by MrMakMak Link to comment Share on other sites More sharing options...
onnut Posted February 12, 2011 Author Share Posted February 12, 2011 There are some nice answers here, thanks to those posters. I cannot sell the house at all and nobody will rent. here is why! its a double town house, both side built at different times. one side was built well and the other was not, resulting in one hell of a crack going through every wall and floor in the house splitting in in two. come the rainy season it gets worse. 3 years ago we spent 400k getting it fixed and it split and leaked at the next rainy season, so we tried again with another company with the same result at the next rainy season. its funny because when we bought the house it was a dream home, very nice inside and outside. two days after we moved in it rained hard and we then realised we had a problem. we were recommended to do some work which cost 300k so we did and it helped but did not solve the fact that the last builder who built the 2nd side of the house did not piledrive down enough.. so. we cant sell, and I wouldnt sell it to anybody. its a lemmon so to speak. also nobody would want to rent it at all. if we pay the mortgage while in the UK the place will be collapsing and will be in ruins by the time we come back. this is why we are prepared to walk away from it. anyone else with some ideas ? Link to comment Share on other sites More sharing options...
stander Posted February 12, 2011 Share Posted February 12, 2011 I would say under your present circumstances, walking away is probably you only option. Get yourself to the UK, get settled and try to get your wife a British passport as soon as possible. You hopefully will find suitable employment and you could also try and upgrade your qualifications, so that one day it may be possible for you to return here with better prospects Link to comment Share on other sites More sharing options...
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