Short Sale and Fire Sale

Due to the COVID 19 many property owners are selling their properties in a very low price. In fact many are choosing the short sale or Fire Sale path in order to get out from the loan and avoid any foreclosure and all the complications that such action causes in the way.

These situations are providing real opportunities for investors to purchase homes that are discounted in price by 30%, 50%, 80% below market price.

The Fire Sale

With the Fire Sale method you are selling your property in a low price that attract buyers that are waiting for the next good deal. Fir Sale Properties usually sold quickly and with no complication.

This Fire Sale process is not a good deal for the property owner as most likely the sold price will be much lower than the price that the owner really paid on it. If the property is under a Bank Loan Mortgage it normally takes months before the Bank signs off on the agreement. The price of the property is usually negotiated between the property owner and lender. Sometimes they are willing to negotiate with the new buyer because of the length of time it will take before they close on the transaction.

In some cases the Bank will even reduce the interest rate or the period of the Mortgage Loan in order for the property owner to be able to sell the property as a short sale Fire Sale.

However this option can be a very bad deal for the property owner who is only released from the debt after the Bank Lender or Kai Faak approves the Fire Sale..

With accepting a Fire Sale / short sale the lender (Bank or Kai Fak)will only require that the property owner sells the property before a specific date. If the property does not sell the lender can demand for the remaining amount of the debt and the seller is required to pay this money back to the lender or even can forfeit the property.

The Bank Foreclosure process is a long and expensive affair. So in order to avoid foreclosure the best option for the property owner is to sell the property as a short sale or Fire Sale. This option can help the property owner to save thousands of Baht and also avoid additional loss on the property.