Itís Your Money > Real Estate Information

Securing a loan to girlfriend

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suzukig1:
1. You definitely need a lawyer.

2. So that you can set up the mortgage to be able to foreclose on the mortgage, if necessary.  It's complicated by the fact that as a foreigner you cannot actually take possession of the land.

3. Supposedly you can set up a mortgage so that if you have to foreclose, the property will go to auction and you don't actually take possession.  Then the problem is getting a bidder that will give you a reasonable price. 

FastWalk:

--- Quote from: jj17 on August 14, 2018, 11:48:39 PM ---My girlfriend wants me to pay the 50% deposit on a house, and then she will pay the monthly mortgage repayments. But I want to try and make this a loan to her secured against the property. Has anyone had any experience of such arrangements and if so can you recommend a lawyer to put it together for us ?

--- End quote ---

I can not think of any way to really secure your loan in this situation (based on the available info). 

Not sure if your in country for long and already know all about most of the way things work or if your out of country or really new and just learning.  Either way maybe you and her can just rent for some more time until you feel comfortable to do this without any worry.  It is sort of like asking for a prenup in a wedding.  If you feel like you need it,  you probably will.

For me,  I waited till we had kids and many years of marriage before the big house (owned by the wife).  And then did it without even a second thought.

Will be interested if you share later how you solve this.  I believe there are many that end up with a similar situation/question.

jj17:
SuzukiG1 is on the right track (I know I canít own land but had understood I can still have a loan that acts as a foreclosure if need be, and also the auction route is one option but I wanted to see if there are others). I would also have thought the foreclosure thing is a threat, as the loan is Ďonlyí 50% of the initial value, so she could in theory take out an additional loan depending on how much had been paid off. There is no way I am parting with the dosh without some form of security on it.
it will be disappointing if nobody has cracked this one, so letís see what else comes in (apart from the usual keyboard warrior crap).

cogon88:

--- Quote from: jj17 on August 16, 2018, 02:54:44 AM ---SuzukiG1 is on the right track (I know I canít own land but had understood I can still have a loan that acts as a foreclosure if need be, and also the auction route is one option but I wanted to see if there are others). I would also have thought the foreclosure thing is a threat, as the loan is Ďonlyí 50% of the initial value, so she could in theory take out an additional loan depending on how much had been paid off. There is no way I am parting with the dosh without some form of security on it.
it will be disappointing if nobody has cracked this one, so letís see what else comes in (apart from the usual keyboard warrior crap).

--- End quote ---

Chances are she will never make the first house payment but may get a commission from the seller more then likely one half of your 50% deposit. As to have a legal document here its possible to have anything drawn up but Jesus will be back before you can get it enforced in a court. Plus the land owner has the right just ask you to remove the structure from their land. If its financed through a local bank or land development company forget ever getting it re-financed  Best keep the money in your pocket or you will never see it again better just put the Money down on black or red at least you have a 50/50 chance. Take a cold shower and forget this whole idea

JoeLP:
Gonna beat the broken drum.  Every law in this country is pretty much written to protect the local and screw the foreigner.  She'll have full control and you'll have none.  Even if you can read a law as protecting you, the judge, lawyers and everyone else will take her side before yours.  As the story goes..."you can be parked in a parking lot and a local will drive into your car...and you'll get the ticket."

It's that mentality, but in every part of the legal setup.  You really want safety in buying something to live in?  Get a condo.  That's the only option that has any safety to it.

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