“If you are one of the thousands of unfortunate home owners in South Africa that have been hit hard by the interest rate hikes and falling real estate prices and are now faced with possibly losing the roof over your head, you will be glad to hear that there are solutions out there that are able to assist in avoiding repossession altogether and allowing you to remain in your property.
With increasing interest rates in the South African, repossession has become a real problem being faced by many home owners situated all over the South Africa. During the so called ‘good times’ of the property market, banks were willing to lend pretty much anyone and everyone. Rates were low and people were borrowing left, right and center. Unfortunately not many out there anticipated rates going up (as they normally do) and a result, many home owners are now finding themselves overextended and battling to make ends meet.
There is no quick and easy way out of repossession as at the end of the day banks need to recoup their losses, which ultimately means reclaiming the property. One of the best options is to come up with a convincing repayment plan whereby the banks give you a few months allowing you to get back on track. Aside from this, here are a few things that every home owner should do in order to help the situation.
1. Be sure to give your bank a call
Most of the time you will be able to work something out with the bank before the last minute. They may offer you a grace period whereby you need not make any monthly repayments for the next 3 to 6 months, this would give you a chance to get back on your feet and re-visit the situation 6 months down the line. Remember the last thing the bank wants to do is to repossess your property as this costs them big time.
2. Make sure are well prepared
If it boils down to you having to attend court then make sure that you have all your documents handy and most importantly all correspondence documents that you have had with the bank. Also, bringing a copy of your income and expense statements would help to illustrate to the bank that the repossession was due to no fault of your own (if this is the case) and could even help in convincing the bank that you do have a plan to pay the loan back.
3. Get advice from a repossession expert.
It is highly recommended that you always speak to a house repossession specialist in the early stages. They will normally be able to give you advice based on experiences they have had with other home owners in a similar situation to yourself and may even specialize in buying houses for cash themselves. This can be very handy and a lot of useful information can be gathered by doing this. Once again bring any supporting documents that you may have which will aid the repossession service in assessing your situation. Alternatively you can call a company such as Easy Home Sales who specialize in assisting home owners in preventing the repossession of 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.