Economy has been very shaky in the past couple years and homeowners have felt this hit more than others. The South Africa property market has felt the tough times from home prices falling and many homeowners are afraid they’re going to lose their home by home repossession.
Banks are always willing to work with the homeowners to try to get them back on track with their monthly bond payments. Although banks may have the reputation for having deep pockets to take your money and being eager to take your home away from you, this image is not completely accurate. Banks do not stand to gain a lot when they repossess a home. They made have ownership of the home but they have to bid on it at public auction.
They are not concerned with how much the house is worth. They will only bid on what the borrower owes them-nothing more. So, they are not making a profit, especially with the way property values have dropped recently. Homeowners definitely do not stand to gain anything from a home repossession. They maybe won’t have their monthly bond payments to make but they also do not have their home and they have a negative credit report that can haunt them for years.
Homeowners that are struggling in South Africa to keep their home from repossession are finding a good solution in ‘sell and rent back’ services. Sell and rent back companies are being used more and more now with so many homeowners at risk of losing their home in repossession. The great thing about these sell and rent back services is that you no longer have to lose sleep every night worrying about getting kicked out of your home because you can’t make the monthly bond payments, this is one sure way to stop repossession of your home. These sell and rent back companies buy your home for cash and allow you to stay in the home and rent it from them.
Your life can continue the way it was before you begin having such financial difficulties. You’ll still be in your home but won’t have to worry about large monthly bond payments, taxes or the many other financial strains owning a house can cause. You’ll have a chance to get back on your feet financially, without the stress of uprooting your family and having to find another home to live in. Not to mention, if the home was repossessed, you would be black listed with credit companies and would have a difficult time getting credit or even renting a home as landlords also do a check of your credit history before renting out property.
Sell and rent back companies seldom charge fees for their services so you don’t have to worry about coming up with upfront cash to sell your home, this is another great way to prevent repossession. Another great bonus is that they also offer you a buy-back option. In the future when your financial situation improves and you’re ready to buy a home again, you can buy back your home. So, before you give up completely on your home, contact one of the rent and buy back companies and see how they can help you and your family.
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.