Any dealings with Bangkok Asset Management (BAM) ?

[SurinBeach]

Hi All,

 

Just wondered if anyone had an dealings with BAM ?

 

The EX defaulted on her SCB mortgage, SCB transferred/sold the loan to BAM,

BAM immediately said the extra amount owed was about 1 Million thb more,

 

After three months and having sent copies of all the latest SCB payments showing the SCB amount to BAM,

BAM cant come up with any reason why its 1 Million thb more !

 

Slightly expensive transfer/admin fee or what !.....

 

Thanks

Regards

SB ....

[meatboy]

I would think the bank sold the house and passed on the debt to bam.the sale did not cover what your ex owed.who was the guarantor or did she get a loan on her salary.

[SurinBeach]

Got a loan 5 years back based on salary,

it almost went to auction at Land Execution Dept but I paid of one of the debts so don't think its sold ....

And she's still living in it ....

[meatboy]

Got a loan 5 years back based on salary,

it almost went to auction at Land Execution Dept but I paid of one of the debts so don't think its sold ....

And she's still living in it ....

unless she pays they [bam] will sell the property,if you are not the guarantor don't worry,if you are try and find out how much was owned to the bank first,and then get the house valued,but I would suspect the bank or the mortgage co.sold the debt and the buyers are out to make as we say a quick buk. it also sounds like the mortgage provider though that what she owed plus interest that they wouldn't get at auction enough to clear the debt,so they cut their losses.i would try and find out who this debt recovery firm is as theyMIGHT be connected to the bank.try and look at any paper work that she has had.

[AyG]

Suppose the house originally cost 5 million, and the mortgage was for 4 million. The bank was happy since the security for the loan was greater than its value.

The mortgage payer subsequently defaults. The amount of debt (originally 4 million) is now increasing daily by the amount of the payments not made. Eventually the amount owed will grow to be more than the house is worth, which is a problem for the bank.

The bank decides to cut its losses and sell the house.

If the house sells for 4 million (i.e. the amount originally lent), then all that is outstanding is any interest payments not made.

However, if the house sells for only 3 million, then the debtor now owes an extra million Baht plus any interest since only 3 of the original 4 million loan has been repaid from the proceeds of the sale.

It looks as if SCB used Bangkok Asset Management (a company which specialises in auctioning off property amongst other things) to sell the property. At the same time it passed the bad debt to the property company. This was probably done because banks don't like to have non-performing loans on their books. It's bad for their capital adequacy ratio, and it's bad for publicity.

Now, how could a girlfriend still live in the house? That's almost certainly because it's not actually been sold in the open market. It's been sold by SCB to BAM for the 3 million.  Is this a fair market price? Possibly not.

 

BAM is hoping that she will make the ongoing payments, and if not, they'll evict her and auction off the property in the hope that it will sell for more than 3 million, so they make a profit (which will go to them, not to paying off the debt).


 

[meatboy]

Suppose the house originally cost 5 million, and the mortgage was for 4 million. The bank was happy since the security for the loan was greater than its value.

The mortgage payer subsequently defaults. The amount of debt (originally 4 million) is now increasing daily by the amount of the payments not made. Eventually the amount owed will grow to be more than the house is worth, which is a problem for the bank.

The bank decides to cut its losses and sell the house.

If the house sells for 4 million (i.e. the amount originally lent), then all that is outstanding is any interest payments not made.

However, if the house sells for only 3 million, then the debtor now owes an extra million Baht plus any interest since only 3 of the original 4 million loan has been repaid from the proceeds of the sale.

It looks as if SCB used Bangkok Asset Management (a company which specialises in auctioning off property amongst other things) to sell the property. At the same time it passed the bad debt to the property company. This was probably done because banks don't like to have non-performing loans on their books. It's bad for their capital adequacy ratio, and it's bad for publicity.

Now, how could a girlfriend still live in the house? That's almost certainly because it's not actually been sold in the open market. It's been sold by SCB to BAM for the 3 million.  Is this a fair market price? Possibly not.

 

BAM is hoping that she will make the ongoing payments, and if not, they'll evict her and auction off the property in the hope that it will sell for more than 3 million, so they make a profit (which will go to them, not to paying off the debt).


 

do you watch these auctions ayg live on the net.the wife watches regular and I try and understand,but gee its so complicated at times with different persons seated holding up their number to object at the price someone has bid for the property.one thing also the buyer if lucky must pay any debt oweing by the defaulter.

[trogers]

Suppose the house originally cost 5 million, and the mortgage was for 4 million. The bank was happy since the security for the loan was greater than its value.

The mortgage payer subsequently defaults. The amount of debt (originally 4 million) is now increasing daily by the amount of the payments not made. Eventually the amount owed will grow to be more than the house is worth, which is a problem for the bank.

The bank decides to cut its losses and sell the house.

If the house sells for 4 million (i.e. the amount originally lent), then all that is outstanding is any interest payments not made.

However, if the house sells for only 3 million, then the debtor now owes an extra million Baht plus any interest since only 3 of the original 4 million loan has been repaid from the proceeds of the sale.

It looks as if SCB used Bangkok Asset Management (a company which specialises in auctioning off property amongst other things) to sell the property. At the same time it passed the bad debt to the property company. This was probably done because banks don't like to have non-performing loans on their books. It's bad for their capital adequacy ratio, and it's bad for publicity.

Now, how could a girlfriend still live in the house? That's almost certainly because it's not actually been sold in the open market. It's been sold by SCB to BAM for the 3 million.  Is this a fair market price? Possibly not.
 
BAM is hoping that she will make the ongoing payments, and if not, they'll evict her and auction off the property in the hope that it will sell for more than 3 million, so they make a profit (which will go to them, not to paying off the debt).


 

Property is usually auction off on the condition the successful bidder does his own eviction.

I won a bid on a condo and had to wait 4 months for the owner to move out. That was in 2008.

If your GF is smart, she should get a relative to bid in the auction and get the house at 70% of the loan outstanding.

[AyG]

Property is usually auction off on the condition the successful bidder does his own eviction.

I'm disappointed with the bank's behaviour at a number of levels:

(1) It didn't notify the girlfriend that the property was to be sold.

(2) By selling the property as occupied, the property will have been sold at a lower price than otherwise. (Had the girlfriend been notified should could have vacated the property.)

(3) The price at which the property was transferred from the bank to BAM is (to put it politely) not transparent.

Obviously, the bank doesn't have a legal duty of care to the girlfriend, but it should at least try to appear to act ethically.

[SurinBeach]

Thanks Gents, but still back to the original question ...has any one had dealings with BAM ?