Discussion here to settle debate. Utilising a chanute against a purchase

[wjdw]

Ok a discussion we are having here in the bar, i believe i am right but i am told i am, wrong.

 

"Mike"'s wife owns a land plot Mike bought in her name for 2.5m 

 

Mike wants to purchase an additional property, but instead of putting down funds with the bad exchange, mike states to wife that put down chanute as collateral with the loaning bank

 

- I say that's impossible, only can said chanute be used for same loan when its for building or a loan against the chanute from the bank.

 

Am i wrong?

Edited November 18, 2016 by wjdw

[Peterw42]

Wife is taking out a mortgage and using the chanote as colateral, why would that not be possible ?

 

What bar ? I will pop round

[wjdw]

If in Phuket - Zanzi Bar.

 

No, its impossible to i am 90% sure, your experience of this is? 

[Peterw42]

12 minutes ago, wjdw said:

If in Phuket - Zanzi Bar.

 

No, its impossible to i am 90% sure, your experience of this is? 

 

I am looking at it from the banks perspective, they lend money and want security against the loan. Either the property being purchased or another property. I know I have done similar in Australia, used equity/ownership in one property, to borrow and buy another property.

As long as the bank has security, they could probably lend against a picasso painting.

 

In Pattaya, so it may take a while to pop round, lol

[Peterw42]

The bank would just be doing a mortgage on the wife property, she gets the money, gives it to husband and he buys a property for cash. 

If you think about it, wife could loose her property if mortgage isnt paid, but husband keeps his, win win

[blackcab]

Mike is right. You are wrong. Now buy us both a drink.

 

It is perfectly possible to get a loan from a bank that is secured against a chanote. The bank will not be too bothered what the money is used for.

 

As long as the borrower and the chanote used for security fulfill the bank's criteria that is.

 

The borrower needs a job/regular income, they need to be young enough to see out the term of the mortgage, etc, etc. All the usual terms you would expect.

[trogers]

10 hours ago, Peterw42 said:

 

I am looking at it from the banks perspective, they lend money and want security against the loan. Either the property being purchased or another property. I know I have done similar in Australia, used equity/ownership in one property, to borrow and buy another property.

As long as the bank has security, they could probably lend against a picasso painting.

 

In Pattaya, so it may take a while to pop round, lol

 

You would be correct if we are in the period before the Asian Financial Crisis. But now, the bank would also evaluate the borrower's ability to repay the mortgage.

[trogers]

10 hours ago, Peterw42 said:

The bank would just be doing a mortgage on the wife property, she gets the money, gives it to husband and he buys a property for cash. 

If you think about it, wife could loose her property if mortgage isnt paid, but husband keeps his, win win

 

A smart wife would demand that the new property be under her name as well... ?

[electric]

22 minutes ago, trogers said:

 

A smart wife would demand that the new property be under her name as well... ?

 

Presumably the property Mike wants to buy will be in her name anyway ... unless it's a condo.

 

Bank would possibly only loan less than 1 million baht anyway against a chanote worth 2.5 million. They do like to have things very much in their favour.

 

If the bank does lend money against wifes chanote, they may hesitate if the loan was used to buy something in farangs name. Could be messy for the bank if the loan goes sour.

 

In a different hypothetical scenario, wonder what Mikes reaction would be if wife wanted his condo title as security for a bank loan she was trying to get ?

 

[cornishcarlos]

As Mike paid for the initial plot of land, don't think the wife can really complain if he wants to mortgage it to finance another property :)

We have two loans running at the moment, exactly the same conditions specified in the OP...
So OP, you are wrong but don't let that stop you drinking :)

[madmax2]

You can get a second mortgage/loan on one chanote/title deed to a property providing you have paid of a substantial part of the first mortgage/loan and the combined amount of the two loans does not exceed the amount the bank will lend to you against your paid for share on that property

Depends on the bank but for instance if a bank will loan 60% of a properties value and you only still owe the bank 20% of its value they will give you a second loan for 40% of its value

Banks when funds are tight generally are only happy to lend money to people who do not really need a loan 

 

[SunsetT]

Surely if anyone provides a chanute as security for a loan from a bank or private individual, they could later go to the Land Office and claim they have lost the chanute and get a new one.

[LivinLOS]

The bank will lend money on some %age of the value of the land given as collateral.. What you choose to do with that money borrowed is then up to you. 

 

Its precisely this situation which caused some land we purchased to be 'cheap'.. The borrowed took on debt, plowed it into something that failed, we paid off the bank debt to purchase the land. 

[bark]

On 18/11/2559 at 10:27 PM, blackcab said:

Mike is right. You are wrong. Now buy us both a drink.

 

It is perfectly possible to get a loan from a bank that is secured against a chanote. The bank will not be too bothered what the money is used for.

 

As long as the borrower and the chanote used for security fulfill the bank's criteria that is.

 

The borrower needs a job/regular income, they need to be young enough to see out the term of the mortgage, etc, etc. All the usual terms you would expect.

I agree, please buy me a drink also. And buy one for the girl at the bar, that will join me. I don't know her name yet.

But 100 % she will be Thai, and Hot Looking :)

Cheers

[madmax2]

On 11/21/2016 at 10:47 AM, SunsetT said:

Surely if anyone provides a chanute as security for a loan from a bank or private individual, they could later go to the Land Office and claim they have lost the chanute and get a new one.

The loan would be registered on the Chanote/ tittle deed by the bank as a mortgage on the property so even if you could get a copy of the chanote it would make no difference, only the bank/lender can arrange to remove it which would only be done when the loan is payed back

Edited December 5, 2016 by madmax2

[SunsetT]

On 05/12/2016 at 4:02 PM, madmax2 said:

The loan would be registered on the Chanote/ tittle deed by the bank as a mortgage on the property so even if you could get a copy of the chanote it would make no difference, only the bank/lender can arrange to remove it which would only be done when the loan is payed back

...But what about a private individual taking a chanote as security for a loan?

[blackcab]

58 minutes ago, SunsetT said:

...But what about a private individual taking a chanote as security for a loan?

 

If the loan is not registered on the back of the chanote then the loan is not secured against the property.

 

If the borrower defaults then the lender has to take them to Court. This takes a long time. By that time the property could have been sold by the owner.

 

Equally, the borrower/property owner could go to the Land Office and get a replacement chanote. It can be done. After which they could sell or officially mortgage the property.

 

If this happens the original, unsecured lender is not going to see their money again.

 

With a new chanote they could also get another unofficial loan again and then sell the property afterwards. 

 

Equally, if the property owner/borrower dies, the situation could well get difficult.

[SunsetT]

9 hours ago, blackcab said:

 

If the loan is not registered on the back of the chanote then the loan is not secured against the property.

 

If the borrower defaults then the lender has to take them to Court. This takes a long time. By that time the property could have been sold by the owner.

 

Equally, the borrower/property owner could go to the Land Office and get a replacement chanote. It can be done. After which they could sell or officially mortgage the property.

 

If this happens the original, unsecured lender is not going to see their money again.

 

With a new chanote they could also get another unofficial loan again and then sell the property afterwards. 

 

Equally, if the property owner/borrower dies, the situation could well get difficult.

So can the loan just be written/registered on the back of a chanute or does it have to be done by a lawyer?

 

[blackcab]

10 hours ago, SunsetT said:

So can the loan just be written/registered on the back of a chanute or does it have to be done by a lawyer?

 

 

It can only be done by the officials at the land office. Both the borrower and the lender need to attend at the same time, with their ID, so everyone knows what is going on.

 

You can use a lawyer to draw up the mortgage contract if you want to, but the lawyer can't write on the chanote.

[SunsetT]

2 hours ago, blackcab said:

 

It can only be done by the officials at the land office. Both the borrower and the lender need to attend at the same time, with their ID, so everyone knows what is going on.

 

You can use a lawyer to draw up the mortgage contract if you want to, but the lawyer can't write on the chanote.

Thanks Blackcab......Very useful info.