What was at one time almost a guaranteed certainty-keeping your home- is now not so certain for many unfortunate homeowners. The high interest rates and increasing inflation rates have made it very difficult for people in good financial shape to stay on top of their bills. Those that find themselves suffering from catastrophes and circumstances beyond their control like redundancy, illness, divorce or separation are having a difficult time meeting their financial obligations each month and fear they may suffer from a home repossession. The good news is, it is most certainly possible to stop repossession.
Homeowners have every reason to fear losing their homes as the rate of repossession in South Africa has almost doubled in the past 3 years and this started when the interest rates were not near as high as they are today, adding to the troubles homeowners have in making their bond payment.
However, in spite of the high rate of house repossession rate, it can be easier than you think to hang on to your home and avoid having it repossessed. The mistake many financially-troubled homeowners make is to throw their hands up in the air, pretend the situation doesn’t go away and just give up. All this accomplishes is that the bills keep adding up along with late fees and often legal fees as well. By facing their problem head on, they’ll realize that they can prevent repossession from happening.
Trying to work out a deal with the bank is obviously the wisest choice for the homeowner, especially if keeping their home is their goal. However, this often becomes difficult when they wait too long. They wind up owing so much and the bank is frustrated. Banks, however, are usually very willing to work with the customers because it cost them a lot of time and money to repossess a home. Sometimes, the homeowners are not able to work out a deal with the bank because their financial situation may have changed so much that there is no way they can continue to make any kind of bond payments that may be required. In situations like this, selling the home almost seems like the only option.
Selling the home under such short notice is often difficult if not impossible. The selling market is down right now and homes are just sitting. In come the property investors to save the day for the homeowner. Property investors are often not only the only option to the homeowners but are the best options. They will offer a discounted price for the house, which isn’t what homeowners like to see but it gets them off the hook with the bank. They can also guarantee a fast sale with no hassles and cash. This provides a win win situation for everyone involved. Allowing property investors to buy the home from the bank offers several advantages.
– The sale is quick.
– The homeowner’s credit record is saved as a home repossession does not go on their record, which would cause them to be black listed from getting any credit in the future for many years.
– The homeowners are often given a “sell and rent back” or “sell and buy back option” –
– Homeowners will not have to leave their home.
Dale Purdon, director and founder of IMAGINE Properties, Easy Home Sales any many more. Prior to setting up IMAGINE, Dale set out to build his own property portfolio in South Africa where he focused on acquiring high yielding rental properties in the lower end market and gained extensive experience in stock-sourcing as well as portfolio management.