Repossession of your Home – one of the most traumatic events in any person’s life
In the current economic climate it is distinctly possible that even somebody who is very careful with money can fall on hard times.
The bond repayment that was well within your reach when you bought the house has now become a commitment that you cannot manage – because of rising interest rates, and the price of fuel, food and other essential items.
Irrespective of the reason why you have stopped paying your mortgage – redundancy, death of the breadwinner, divorce, failed business venture, inability to refinance and many more – the bank will take action as soon as mortgage payments are not kept up to date, and will repossess your house if they feel you are unable to meet your monthly repayments presently or in the future.
What a wonderful relief it would be if you could go to bed again at night and fall asleep without this sword hanging over your head.
The good news is that we can prevent the repossession of your house, if you are willing to work with us.
There are, however, a few things that you must understand beforehand:
The biggest mistake that property owners make who cannot meet their bond payments, is not to contact the bank in good time, but wait until the bank contacts them first. Many property owners then ignore the bank’s calls and letters.
Now alarm bells will ring at the bank immediately! If you see that you will not be able to make any month’s payment, you must contact the bank, explain your situation, and make an appointment to see them. It is in the bank’s interest to find a solution to the problem.
There are various possible solutions – each person’s situation is unique
The bank may give you a payment ‘holiday’ until your situation has improved – like 6 months of paying only half the monthly amount, or 3 months of making no payments, depending on your personal situation.
You could extent your mortgage payback period to 30 years, or apply for an interest only mortgage (SA Homeloans, for instance offers interest only mortgages). This will give you more cash in hand, but you will be paying more interest. You could change the mortgage repayment again after reorganising your finances.
Your accountant or financial advisor could give you financial advice (NOT an insurance broker!). They have seen situations like this before and might give you feasible ideas that can be implemented.
The consequences of not keeping up with your mortgage payments:
The bank will repossess your property if you do not keep up with your monthly payments, and do not communicate with them to find a solution. If a solution cannot be found, the bank will take steps to have the property repossessed.
Some people give up and wait for the bank to do the repossession. They think that all their financial worries will be over after the bank has repossessed the house – but as soon as your house has been repossessed, all your creditors will be knocking on your door.
Someone who has gone through repossession might be financially ruined for a very long time, because he will not be able to get credit.
When the house has been repossessed, the Sheriff will auction it. The bank will also be bidding at this auction. If the property is worth R1 000 000, for instance, and the outstanding bond is R500 000, the bank will bid at the auction up to R500 000, and then leave the auction. If the bid is granted at R500 000, the bank will get their outstanding money back.
If you think you will get some money back after the auction, you may be in for a very nasty surprise. Many auctions do not go much higher than the reserve price that the bank has asked for. Now the owner has no house PLUS a bad credit record. He may not be able to get credit for a long time (talking in years!), and struggle to rebuild his life.
How we can help you
The best action to take to prevent repossession is to team up with us in a Joint Venture. We will stop any legal action or auction against you. We will not only save your house from repossession, but also any other legal action from car finance company, council, doctors, credit card company or any other creditor.
We will work with you to resolve your debt and creditor problem. We have helped many customers over the past 6 years and we want to help you too. Feedback from clients is available on request.
The solution to your debt problem is normally to sell your house. We will value your house and make you an offer. There is no obligation to sell property to us.
The sale of your house will take time. The average house is selling in 7 month (October 2014) and then registration takes 3 months. In this time we will pay all your house expenses so that you have time to find your feet.
We highly recommend you use us as a last resort. You need to make sure that you have no family member able to help you with a loan. There is an option to apply for debt review as well. But if you have tried everyone else, we will help you. This will be a joint venture so we will have to work together to resolve your debt.
We are not able to help everyone. There are certain criteria according to which we can help you:
We must be your last resort, and you must be willing to work with us. First of all we must value your property to see if you have enough equity in it. Equity is the difference between the market value of your property and your outstanding bond. Should you meet the criteria, we will help you.
The ratio between the value of your house and your outstanding bond must be 65% to 80%. There must be enough equity in your house to pay all your creditors and service the mortgage and up keep of the house until it is sold. That is why we can only help you when you have 65% 80% equity in your house.
Your next step is to complete form below or call me with any questions regarding the possible joint venture.
Do not procrastinate and wait until it is too late.
Contact me today and complete form below. I will contact you within 24 hours.
Contact Colin Brazendale at:
Cell: 072 838 6854