Mortgage refused due to flood risk

[CHANGOVER]

We had a buyer for our house in Nakhon Sawan but she has informed us

that as our house was in one of the areas of 2011 floods she has been refused

a mortgage by the banks.

Is this possible or maybe she's using it as an excuse for not having enough

deposit etc?

[robblok]

I think this is not a likely story as here in Bangyai there was flooding too and many housing projects are still selling. I doubt they all buy those houses without a mortgage.

[CHANGOVER]

I tend to agree. Probably a 'face saving' excuse.

[Pib]

Well, the bank may have said it was in a flooded area and they would require her to put up more money (i.e., like maybe the bank would only provide 50% of the purchase amount and she had to come up with the rest, etc), but I seriously doubt the bank would say they would not provide "any mortgage" on a house which was in one of the 2011 flooded areas. Heck, probably 20% of Thailand was impacted by the 2011 flood...I know my house/moobaan in western Bangkok was as we had around 1.5 meters of water in our moobaan for around a week and probably 1.0M for two weeks, and 0.5 meters for one week. They are still building, buying and selling houses in my moobaan and I expect most of them are bought with mortgages versus cash since I expect most of the houses are in the 8-15M baht ballpark.

[trogers]

She probably did not even know that the house was flooded in 2011 until the bank told her. And she decided not to purchase based on this info and used the bank as an excuse.

[CHANGOVER]

She probably did not even know that the house was flooded in 2011 until the bank told her. And she decided not to purchase based on this info and used the bank as an excuse.

As she lived in the soi 500 m away I'm sure she knew! Her house was completely underwater.

Which is why she wanted ours as it's on higher ground and not prone to flooding...normally.

[swissie]

Imagine, if banks wanted to increase the collateral to 50 % or more for all existing homes starting tomorrow in "flood-aereas".

Cheers.

[PattayaPhom]

Banks as insurers will refuse business on flooded areas, so either a point blank refusal or as stated a larger deposit required.

[CHANGOVER]

Banks 'as banks' will never refuse business.

Just depends if you can afford the 'intro fee' as I was alluding to.

I think it was a face-saving issue, not the banks refusal of a mortgage because

of a 'possible' flood risk which would apply to at least 50% of Thailand!

[gtm2k]

Well, the bank may have said it was in a flooded area and they would require her to put up more money (i.e., like maybe the bank would only provide 50% of the purchase amount and she had to come up with the rest, etc), but I seriously doubt the bank would say they would not provide "any mortgage" on a house which was in one of the 2011 flooded areas. Heck, probably 20% of Thailand was impacted by the 2011 flood...I know my house/moobaan in western Bangkok was as we had around 1.5 meters of water in our moobaan for around a week and probably 1.0M for two weeks, and 0.5 meters for one week. They are still building, buying and selling houses in my moobaan and I expect most of them are bought with mortgages versus cash since I expect most of the houses are in the 8-15M baht ballpark.

Which part of west bangkok are you in please ?

[Pib]

Well, the bank may have said it was in a flooded area and they would require her to put up more money (i.e., like maybe the bank would only provide 50% of the purchase amount and she had to come up with the rest, etc), but I seriously doubt the bank would say they would not provide "any mortgage" on a house which was in one of the 2011 flooded areas. Heck, probably 20% of Thailand was impacted by the 2011 flood...I know my house/moobaan in western Bangkok was as we had around 1.5 meters of water in our moobaan for around a week and probably 1.0M for two weeks, and 0.5 meters for one week. They are still building, buying and selling houses in my moobaan and I expect most of them are bought with mortgages versus cash since I expect most of the houses are in the 8-15M baht ballpark.

Which part of west bangkok are you in please ?

Khet TalingChan