Virus and difficulty repaying the bank

[greeneking]

"Thai banks have offered companies hit by the novel coronavirus more time to repay loans.

The debt-relief package, announced by the Thai Bankers' Association.... offers a yearlong grace period on loan repayments by banks covering companies in the tourism sector" Asian Review March 04, 2020

Very welcome if true and my if my bank manager knows about it.  If he does not what next?

My house is the security for a loan for a tourist restaurant and I am tempted to tell the bank I can not pay this month, or any month for some time. 

I think Thai banks will soon be overwhelmed by closed businesses and defaults on payments for houses and condos.

If they  take my house due to non-payment how long before eviction?  What if I tell them I understand it is now their property but would they be interested in renting it to me?

[Monomial]

Thanachart Bank at least is currently not offering any relief for mortgages. Only for car loans and business loans.   If your loan is a genuine business loan and simply collateralized by your house, you may find the bank sympathetic and willing to offer you some kind of relief under the plan above.  If it is a personal loan against the house however, you should be prepared for them to be the callous bastards they truly are. You can always talk with HQ about special loan offerings if your local branch is unfamiliar, so I wouldn't worry about that.

 

As far as how the banks will respond after repossessing your house, that is up to them, but they are not in the business of renting. If past trends hold (like the Asian Currency Crisis)  they will simply let the houses sit vacant and on their books at full value. I wouldn't count on them behaving as you would expect a bank in the West. Remember there is no property tax here for banks holding assets. It costs them nothing to sit on it and simply wait.

 

[timendres]

Don't know if it is possible, and it most likely is not in the current environment, but if you could somehow unwind that business, and get enough money together to pay of that loan, that might be your best option. Your story is going to play out over and over during the next 12 months, and the banks are going to have to consider how to deal with tons of loan defaults. So be sure you go to your bank and discuss things with them. It may be constructive.

[natway09]

It does seem a bit early for you to be in trouble ,,, you must have been highly negative geared.

Nevertheless get along to your bank just as soon as possible & put ALL your cards on the table.

The bank does not want your house or your business & has enough problems without repossession at this time. Your restaurant could be closed for 4 months & another month to pick up steam so you need a 6 month solution.

Good Luck

 

[greeneking]

2 hours ago, natway09 said:

It does seem a bit early for you to be in trouble ,,, you must have been highly negative geared.

Nevertheless get along to your bank just as soon as possible & put ALL your cards on the table.

The bank does not want your house or your business & has enough problems without repossession at this time. Your restaurant could be closed for 4 months & another month to pick up steam so you need a 6 month solution.

Good Luck

 

Thank you for your concern

Longer low seasons and less busy high seasons have not left much in the bank even before this issue.  few places open now and still getting less than 500 baht most days this week!  Staff and bills to pay.

It is hard to see any recovery this year.

Have been told if we actually close then staff will be entitled to 5000 baht a month.  Bank have said they will be in touch.  I hope they are so busy with similar requests that they will have some kind of policy rather than treating us as an individual problem.