Mortgate for an off the plan Condo

[grahamxxx]

Just wondering if anyone could help me out with this question...My long term on again,off again girlfriend/friend of 8 years has bought a condo off the plan and she had 2 jobs at the time when she bought it but now has lost one of the jobs.

She outright owns another condo worth 3million baht,a new car worth 1 million baht and about half a million baht in her bank account..

She has paid the 30% downpayments on this new condo which costs 4 million baht to purchase and she said she is worried that the bank will maybe not loan her the money to complete the purchase..and could I deposit half a million baht into her account,just for show,for the bank,and when the bank grants her the mortgate she will transfer the money straight back to me....Now I do trust this girl,but maybe not trust enough for that type of money.

It seems to me that she has plenty of collateral for the bank to give her a loan,but she disagrees and says it is not that easy and would I help her.

She earns about 40k baht a month.

I'd want to help her,but I also don't want to lose my money and the friendship as well.Does any one know if she is correct in thinking that she will have issues getting a loan from the bank?

.

[KittenKong]

For some strange reason my English-Thai dictionary shows the same Thai word for both "loan" and "gift".

I would not do either to anyone here.

[trogers]

One should straighten out one's finances first. She can get instant cash by pledging her car to a bank, that is, if she has told the truth about fully owning it.

If that is not the truth, you will not see your money again as she will be overleveraged.

Edited August 24, 2014 by trogers

[PattayaPhom]

As security, transfer her car to your name, once 500K is returned in agreed period transfer back to her. If she refuses, obvious you will never see the money again

[inzman]

Dude, never loan money to a Thai. You will never see the cash again.

[grahamxxx]

As security, transfer her car to your name, once 500K is returned in agreed period transfer back to her. If she refuses, obvious you will never see the money again

Thanks for the answers,the car rego transfer seems like an excellent idea....but does anyone know about the diffuctly of a Thai getting a mortgate with the assets that she has,or is she just trying to do me over?

[trogers]

As security, transfer her car to your name, once 500K is returned in agreed period transfer back to her. If she refuses, obvious you will never see the money again

Thanks for the answers,the car rego transfer seems like an excellent idea....but does anyone know about the diffuctly of a Thai getting a mortgate with the assets that she has,or is she just trying to do me over?

Banks would first look at earnings and present debt load to estimate the ability of borrower to pay off the mortgage.

Having lots of asset is just an assurance, but is a last resort which the bank prefers not to employ. Avoidance is better than going to the courts to forfeit.

[Robert24]

She can use the other condo as security for the new loan, no problem at all. Don't pay her any money or you will be at high risk to be disappointed by her (because you trust her). I'd be worried about the fact that she asks you for money. That's a bad behavior to start with in an on/off relationship. This would be a different matter if you are married with her and you make a joint decision to buy the condo and you put both your names down on the property.

[grahamxxx]

She can use the other condo as security for the new loan, no problem at all. Don't pay her any money or you will be at high risk to be disappointed by her (because you trust her). I'd be worried about the fact that she asks you for money. That's a bad behavior to start with in an on/off relationship. This would be a different matter if you are married with her and you make a joint decision to buy the condo and you put both your names down on the property.

Well that's right,that's what I was saying to her that she has plenty of security/collateral but she reckons the bank needs to see cash in bank.Look like shes trying to do me.Very disappointing.

Thanks for reply

[Regyai]

Your getting myopic over collateral

Bank wants to see EARNINGS

A loan from you will NOT be an immediate answer as she will have to 'walk the book' a few months with it to massage the bank's willingness

But as a general rule dont lend money for medical reasons....

always causes amnesia

[wayne hoskins]

Graham,don't fall for that trick,I got caught not that much money. Though,if you take the advice,do not lend money to any thai,and I mean any thai I have been married to a thai for 7 years we live half year in aust and the rest in thailand I lent money to her two sisters stupid me,they say not a lot around 30,000 bht this is over the last 3 years,guess what every month same old excuse,no. Money,wife says cannot say anything cause problem,see what I mean so learn to say No even the car you mention,would be a problem,just keep your money in your pocket,believe me you will be much happier,good luck

[Thakkar]

Banks, and more so Thai banks after the '97 crisis, are good at judging credit worthiness and a person's ability to service their loans. Individuals on the other hand, especially those with a speculative mentality, are poor judges of their own ability to repay loans. They tend to make overly optimistic projections like the amount of bonus/pay rises they can expect.

If her bank, with way more info on her situation (as well as the market overall) than you have, think she is over stretched, then she probably is. Things may yet work out, but that's not really the issue here. The issue seems to be that the OP doesn't think his gf is telling him the truth.

The real question is: do you care enough about her and the future of your relationship to spend 500k baht to find out what she's made of? Should you trust your hopes, or your fears?

T

[Rayinbkk]

Generalizations are rarely helpful. I, for one, have lent significant sums of money to Thai friends more than once and have had everything returned (and even reciprocated). I guess it all depends on the kind of Thai that you know. In the circumstances described in this case, I would not be inclined to lend.

[cyborgx]

As security, transfer her car to your name, once 500K is returned in agreed period transfer back to her. If she refuses, obvious you will never see the money again

Huh? Nobody sees the possibility that the car could be totally financed and hence just another debt. Taking ownership won't help when they come to repossess it!

[MobileContent]

Stay away from it. She has a car, a condo which is fully paid valued at 3 million Baht plus has 500k in the account. She somehow sits on 4.5 million Baht in assets and she should be able to take a mortgage of the property that she paid already with say 50%.

[Regyai]

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As security, transfer her car to your name, once 500K is returned in agreed period transfer back to her. If she refuses, obvious you will never see the money again

Huh? Nobody sees the possibility that the car could be totally financed and hence just another debt. Taking ownership won't help when they come to repossess it!

Transferring ownership wont be possible if financed (she wont have the papers)

Stay away from it. She has a car, a condo which is fully paid valued at 3 million Baht plus has 500k in the account. She somehow sits on 4.5 million Baht in assets and she should be able to take a mortgage of the property that she paid already with say 50%.

Again, Thai banks want to see throughput in the account. A dormant half mill and assets dont tick all the boxes. She needs 'earnings'.

[thairay]

just have her complete the paperwork as if you have bought the car and hold it while she has your 500...no money back,sell the thing.of course you are probably not going to make her happy asking for collateral but her problem and yours solved until the next payment

[khundon]

MMMmmmm

Chance losing 500K Baht or losing an "of,on girlfriend" !

Here is my take on it, for what it's worth.

Baht1000 will get you another, love you long time, girlfriend. No amount of money or begging or court cases, will get back your Baht 500k, if she won't pay it.

You pays YOUR money and makes your choice.

[Briggsy]

The car idea assumes the OP gets the keys and the car as well. Legal ownership is nothing in Thailand without physical ownership.

The whole "show money" thing sounds like a complete crock to me. However, I have never approached a Thai bank for a loan. Still sounds like a crock though.

There is no shortage of loan companies in Thailand.

[PattayaPhom]

As security, transfer her car to your name, once 500K is returned in agreed period transfer back to her. If she refuses, obvious you will never see the money again

Huh? Nobody sees the possibility that the car could be totally financed and hence just another debt. Taking ownership won't help when they come to repossess it!

You can't take ownership unless car is paid for. Hence if she refuses, either its financed or she won't give any security

[Paul944]

Why does she need 2 condo's?

The extra money on her account is just for her emotional reasoning the bank will give here a mortgage if she has more money to show them. It has no use to try to convince her banks do not think like that.

With 40,000 baht a month a mortgage of 2,8 million baht should not be a problem if she does not have any other debts,

If you agree to this, who is going to pay the 2 money transfers?

If you do not want to borrow the money, tell her your money is stuck in deposit's or shares and you can not cash it that easily.

[Regyai]

The car idea assumes the OP gets the keys and the car as well. Legal ownership is nothing in Thailand without physical ownership.

The whole "show money" thing sounds like a complete crock to me. However, I have never approached a Thai bank for a loan. Still sounds like a crock though.

There is no shortage of loan companies in Thailand.

We might wonder how all those hundreds of thousands of Finance deals on cars work then

'show money' is either being misunderstood or 'lost in translation' between the two parties, as I said above a dormant amount sitting in (or injected into) the girlfriends account will achieve nothing, it needs to be used as 'earnings' (with a legit story behind it eg tax paying small business) and the 'book walked' as Thais say with several months of 'revolving door' deposits/withdrawals. This is no crock its business as usual for Thai loans.

Edited August 25, 2014 by Regyai

[SPALAX]

For some strange reason my English-Thai dictionary shows the same Thai word for both "loan" and "gift".

I would not do either to anyone here.

Many thais who have a poor English say "send money" which is perfect in thai, but is quite strange for a farang.

If she owns condo, car, aso, it won't be a problem at all to get a loan, except if she is very indebted.

[Lamphen]

Here is my two pennies worth; do not lend her more money than you are prepared to lose as you will most likely not see your money again - ever.

[hilfinad]

Know a goverment officer who "ownes" 3 houses, 3 cars and 8 rai of land. "Ownes" wil say as much as she has the keys to get in the houses and/or start the cars. Everything is financed by banks and worse. She earns about 30.000 baht a month. On payday her whole salary goes to the bank. Pappa gives her 15.000 a month to servive.

Ask your friend if she can prove ownership of the condo and car. Probably you have to go to the bank for all the paperwork, which means its all mortgaged.

By the way, she lost 1 job, means half her income. On 20.000 baht a month a mortgage of 4,5 mln is impossibleto get.

Keep your money in your pocket where it belongs!

[GOLDBUGGY]

Don't get involved! If you have to buy here friendship then it is not worth it!

She has more than enough collateral to satisfy the loan on her own. Renting out the 3 Million Baht Condo while she lives in the 4 Million Baht one should almost take care of the mortgage payment. I also think she already knows this.

If her bank refuses there are also plenty of other banks to ask who will not. I also doubt she would have put the 30% down if she did not get her mortgage approved first. Nobody is going to tell the bank she lost her other job unless she does.

[GOLDBUGGY]

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Your getting myopic over collateral

Bank wants to see EARNINGS

A loan from you will NOT be an immediate answer as she will have to 'walk the book' a few months with it to massage the bank's willingness

But as a general rule dont lend money for medical reasons....

always causes amnesia

The 500,000 Baht Cash she has in the bank account is enough to cover mortgage payments for a long time. Making 40,000 Baht a month would be tight to make these mortgage payments on 4M for a long time, but is possible if she lived cheaply, or until she got another job. Certainly enough money to buy time to sell the other Condo, or rent it out, using that money to help pay her present mortgage.

I don't see a problem her at all. Especially if she has good credit from the first condo.

[Torrens54]

Just curious.... What is the Bank Interest Rate on a Home Loan of say 2 Million Baht and what are the monthly repayments over 30 years?

Could ask the Bank BUT then it sounds like I want a loan, when in fact I'm just curious. Thanks in advance for any Info.

[ALFREDO]

As security, transfer her car to your name, once 500K is returned in agreed period transfer back to her. If she refuses, obvious you will never see the money again

Huh? Nobody sees the possibility that the car could be totally financed and hence just another debt. Taking ownership won't help when they come to repossess it!

He will find that out, (car could be totally financed) when she cannot present the ownership book.

[mixxer]

trust your instinct and ask yourself why you posted this question in the first place .