6.IF NOT BEING SUED, NEGOTIATE TERMS

If one defaults in mortgage payments and receives notice from the bank, there are 7 ways to negotiate to retain ownership of the house.

1. Ask for debt deferral to delay payments up to 36 months in one of 3 ways.

• Pay installments monthly until the debt is paid off.
• Pay the whole remaining debt at once.
• Pay a lump sum in installments over the period of the agreement without monthly payments.

2. Extend the term to pay off the mortgage. A debtor can request an extension of up to 30 years or until the age of 70 years old. When the mortgage term is extended, it must be evaluated as a new debt. In this way, the longer term makes monthly mortgage payments smaller.

3. Request an additional loan to pay interest. A debtor can request additional loans to pay only accrued interest payable by requesting an extension if the accrued interest due is more than the principle. A debtor must always pay the debt and additional loan must be more than the old one not over 25%.

4. A request to pay only monthly interest on the mortgage will be allowed only if the debtor has a good record. Monthly installments can be made for up to 12 months.

5. A request to pay off the mortgage in less than the normal term may be permitted with installments for up to 2 years, but the amount of payment must be at least 500 baht more than the monthly interest on the mortgage.

6. A request for interest rate relief is a special case when the debtor‘s interest rate is adjusted higher than normal. In this case, the debtor can request a reduction of interest rate on the payment date in the case that the debtor pays the installment and interest in one day or a lump sum equal to 3 periods at once.

7. A request for temporary property transfer to a bank to buy back later is just like the selling on consignment and renting your own house. The bank will receive collateral and recoup up to 90% of the collateral cost. If this is not enough to pay off the whole debt, the debtor will pay the difference on the transfer date. This involves a rental charge that is 0.4-0.6% of the collateral value and requires signing a lease agreement that is an annual agreement with 1 month prepaid.

If a debtor wants to buy back the property, the bank will sell it to the debtor. The resale price is determined by outstanding debt and insurance debt and the tenant can apply for new credit.