The Correct Way To Stop Repossession
There are few things in life that are more hectic and scary than the thought of having your property repossessed and losing everything you have. Nevertheless many real estate owners are being faced with this very overwhelming and devastating possibility. When real estate owners are threatened with losing their property because they can no longer make the monthly bond payment, it’s frightening and extremely depressing.
You start getting threatening letters in the mail and it seems like your phone just won’t stop ringing from the constant debt collectors. Your first instinct is to take the phone off the hook, don’t read the mail and lie down and sob. It’s doing these things that cause many property owners to actually lose their house when there may have been answers to their problem.
The rate of home repossessions in South Africa has been very high in recent years and many homeowners may have been able to prevent losing their home if they would have been prepared and not chosen to ignore the problem. The unfortunate thing is that many people are not aware that there are other alternatives to allow you to stop repossession. There is help available out there. All you have to do is reach out for it. If more real estate owners in South Africa were aware of some of the possible solutions, the rate of house repossessions would fall drastically.
You may already be aware of many of the solutions mentioned, but they are critically important. Talking to your bank is probably the most important step you can take to prevent repossession.If you get hold of them as soon as you realize you are going to be unable to make your payments, they will be much more willing to help you work out a solution to help you both. As repossessing a house is pricey to the bank, they do not want to repossess it unless it’s absolutely necessary.
There are several options the bank may offer you to help you lighten your financial load and keep your home. Many banks will offer you a “holiday” or “grace” period where you won’t have to make your bond payments. This period may be from 3 to 6 months and will give you enough time to get your finances in order, pay off other debts, and find employment or whatever needs to be done to help your financial situation.
Increasing the term of your bond may also be a great help. Most South African bond agreements are for 20 years. By extending your term to 30 years, you may be paying more interest but you’ll be paying a lower monthly bond payment. You can always revert back to the 20-year term when your finances improve.
Banks may even be willing to reduce the balance on your bond. While this may be the option the bank likes the least, they may still consider it because they’re still getting money, even if it’s not as much as they would like. They still consider it a better option than having to go through the pricey and time-consuming process of a property repossession.
If all else fails and you can’t work something out with your bank, don’t waste any time and contact a repossession expert. They’ll not only give you good advice but may also buy your house from the bank with cash so it is not repossessed, a process that will destroy your credit history for years to come. As we all know, selling property when facing repossession can be a very stressful and daunting time for the home owner as well as their family.
