Expat Exposure To Non Payment Of Thai Mortgage

[bkkjohnny]

I was married in Thailand and have two young children with my Thai ex wife. She met someone else after we moved overseas to Australia and left us so I divorced her (mutually agreed divorce) last September. The result for her was she came off my work visa and spends her time with her BF on periodic tourist visas while awaiting him to get his own divorce and sponsor some other sort of visa for her (we don't discuss that part). We still have a house in Bangkok. The house has been on the market with two different agents since we moved overseas in 2009 and no real interest from anyone in buying it - if there was an opportunity to offload it without defaulting on the mortgage we would do that but theres just zero interest from buyers. Paying for a full time nanny in Oz makes it difficult for me to continue paying an 85kBaht/Month mortgage so I've decided to stop paying after telling my ex wife this. I forewarned her a while ago so she's not surprised. Each of us have our own concerns about the consequences: She is concerned it will affect her ability to get a visa to move back from Thailand permanently to be with her BF and I am concerned it might affect my ability to get a mortgage in Australia if I decide to stay here and it might affect my ability to travel to Thailand with my boys (they have dual UK/Thai nationality but I have only a UK passport). The house and mortgage are in her name but I was the guarantor. The house was 12.5 million baht, I put down a 2.5 million baht deposit so the mortgage was for 10 million baht. There is still 8.5 million principal left to pay.

Advice appreciated on consequences of defaulting on a mortgage in my circumstances.

[prefabs]

I suppose the easiest way would be to try and sell it for 8.5 milliion baht and pay off the bank. However, there may be other things I haven't heard about on the periphery, so I can't really help much

[theblether]

Put it on classifieds here on TV, there will be a few members interested in looking at a distressed property sale in BKK.

It will at least give you peace of mind if you can dispose of it.

[farang000999]

best to post some photos of the home right here you are offering a nice discount of 8.5m vs 12m.

[Soutpeel]

"but I was the guarantor"

Then you are liable for payment.

I cant see how this would impact you getting a mortage in Aussie, unless of course the Thai bank concerned decided to persue you into Aussie and try and recover the money through a collection agency, for this amount of money it may be worth their while to do it.

Cant see a problem with ex-wifey getting a visa in Aussie, this would be a civil case.

coming back to Thailand for visit's with your boys...shouldnt be problem, provided no one tells the bank your coming....they will not have you on watch list at the airport and arrest you if thatys what your worried about.

Default is a civil case not a criminal case.

[GuestHouse]

I'd advise you write to the bank and tell them that you have divorced your wife, that you are no longer in a position to guarantee the loan and that both you and your ex-wife are now living overseas.

Let the bank deal with it since as you have already stated you are no longer in a position to pay off the loan.

[Soutpeel]

I'd advise you write to the bank and tell them that you have divorced your wife, that you are no longer in a position to guarantee the loan and that both you and your ex-wife are now living overseas.

Let the bank deal with it since as you have already stated you are no longer in a position to pay off the loan.

He can do that, but it doesnt change the fact he would be still liable for the loan, as is his ex-wife, he co-signed orginally, but the fact he is now divorced has no bearing on his liability.

Considering this is quite a large chunk of change, his best course of action would be that under no circumstances the bank finds out were he is living, even the country he is in, as the bank may decide to chase him via a debt collection agency in the country he now resides....it would be worth their while to do so in this circumstance

[TommoPhysicist]

The only downside is you won't be able to get/guarantee another loan in Thailand for 10 years.

After 10 years the loan/default is written off. That bank might not give you credit again, others will.

There is no Visa/criminal liability in loan/guarantee defaults in Thailand.

(Bouncing cheques is an entirely different matter and involves jail)

As SP says, don't give out any overseas address to anyone, including the ex.

[Soutpeel]

The only downside is you won't be able to get/guarantee another loan in Thailand for 10 years.

After 10 years the loan/default is written off. That bank might not give you credit again, others will.

There is no Visa/criminal liability in loan/guarantee defaults in Thailand.

(Bouncing cheques is an entirely different matter and involves jail)

As SP says, don't give out any overseas address to anyone, including the ex.

This is purely a civil matter, bouncing a cheque in Thailand is a criminal offense.....although if the OP came back to Thailand and the bank managed to get a civil court case in place, I wonder if they could keep him in Thailand until the matter was resolved, I have no idea about this aspect of a civil case, but would stand to reason, they wouldnt want him departing the country