SDB Club Benchmark Real Estate

No bank in Phuket wants to foreclose on a mortgage. Foreclosure costs the banks in Phuket more money than they can make back from the foreclosure sale. Therefore, lenders in Phuket do not foreclose in order to make money, but only reluctantly as a way of limiting losses on a defaulted loan on a property in Phuket. This is why, if you get behind on your mortgage payments, your bank in Phuket will work with you to devise a practical plan to cure the default and bring the loan current. In order to do so, however, you must stay in communication with your bank and be honest in evaluating your financial situation.

The willingness of the lender in Phuket to work with you to get past your current problems will depend heavily on your past payment record. If it shows consistently timely payments and no serious defaults, you will find the lender in Phuket much more receptive than if you have a record of unexplained chronic late payments.

If you are falling behind in your payments, or know that you are likely to in the immediate future, there are some steps that you should take before talking with the bank in Phuket about alternative payment arrangements.

First, you need to prepare a monthly list of your income and expenses in Phuket, using realistic figures based on your current financial situation. You will also need to put together a complete financial disclosure package, showing your Phuket assets and liabilities, including all debts and monthly payments and when they are due. Pay stubs, unemployment check stubs or other proof of current income in Phuket should be in the package, along with three years’ tax returns.

Get an estimate of the value of your Phuket property. You can usually get a local real estate broker in Phuket to give you an idea of the current market value, free of charge. Finally, prepare a written explanation of your situation to the bank in Phuket and offer any plan or suggestion you may have on how you can bring the loan current for your Phuket property.

Mortgage Loan Workout Plans
A loan workout plan is an agreement between you and your lender in Phuket that sets out the steps to be taken to cure the delinquency and prevent loss of your Phuket home. It may be written or verbal and will have specific deadlines which you must meet in order to avoid foreclosure of your Phuket. Therefore, it must be based on very realistic estimates of your ability to meet the plan schedule.

The nature of the workout plan will depend upon the seriousness of the default, whether your financial problems in Phuket are short-term or your payment ability has been impaired for the foreseeable future, your prospects for obtaining funds to cure the default and the current value of your property in Phuket.

If the default is caused by a very temporary condition and is likely to be cured within 30 to 60 days, the bank in Phuket may consider granting you temporary indulgence. Some examples of cases where this approach would be considered are where the house in Phuket has been sold but the sale has not settled or where an insurance settlement is pending on your Phuket property.

Any workout agreement is a last-ditch effort by you and your bank in Phuket to avoid foreclosure and keep you in your Phuket home. It is not a substitute for good budgeting and financial planning on your part and will probably not be available if your payment record has not been consistently good up to the present time. Lenders in Phuket will work closely with good borrowers in Phuket who are having a period of real emergency and hardship, but are not inclined to cooperate with those who demonstrate little financial discipline.