“When the banks have threatened to step in and repossess your home it can be an extremely nerve racking and emotional time in ours lives. One of the worst things we could possibly face in life is to be told that the roof over our family’s head is going to be taken away from us and that we have absolutely no choice in the matter. This can instill deep fear and panic and can put extreme pressure on our every day lives.
The truth is that there are steps one can take avoid the repossession from occurring. Most home owners are unaware of this and simply let the banks step in and repossess the property right from under their nose. If only more home owners out there we aware of the various options.
The following actions can and should be taken by all home owners facing or are about to face repossession:
1: Speak to your bank immediately. This is the single most important thing that one could possibly do. If you know that you are struggling financially and that there is a chance that you could miss a payment in the next month or two coming up, phone your bank and let them know of your situation. The banks are usually very understanding and will do everything in their power to help you out. Remember the last thing the bank wants to do is repossess your home, they generally lose money when this happens so they would rather try their best to avoid this situation.
2: Request a ‘grace’ period. This is usually 3 to 6 month period which the bank will grant you whereby you need not make any payment at all. The idea here is to give the home owner a grace period in order to sort their financial life out and to hopefully get things back on track. This can be useful and it gives the home owner time to; get a job, sell another asset that they own, wait for a payment which is due to them but which will only be paid to them a few months down the line etc. Time can be helpful so buy yourself as much time as you possibly can from your bank. Banks are usually willing to work with you.
3: Request a longer bond term. Most home owners are usually on a 20 yr bond period. Many home owners are unaware that one is able to extend this bond term to a longer period of 30 yrs. This means that your monthly bond repayment amount will decrease slightly, however it is important to note that more interest will be paid overall in the long run. When you are having cashflow problems month to month then reducing your monthly payment can be extremely helpful. One can always revert the loan term back to 20 years if need be.
4: Negotiate to reduce the overall debt amount. This is a powerful way to help the situation. The idea here is for the home owner to contact the bank and reduce the overall debt amount. Banks are often willing to do this as it means that they do not need to repossess the property which means they will save money, it also means that you as the home owner will continue to at least pay a bond meaning the bank is still making money even though the over all debt amount has been reduced. The banks would rather arrange this than have absolutely nothing form you and have to repossess the property which can be very costly for them.
5: Approach a repossession expert or property investor for help. This can be the one of the best options if all else fails. There are property investors who actually specialize in buying houses for cash and as a result preventing repossession of their home by proving them with an instant property sale before the banks step in and repossess their home. These property investor are usually very flexible too allowing the home to remain in their home after the sale meaning the home owners will not be kicked out of their home and can carry on with their lives. This can be particularly helpful when the home owner would like to remain in the same geographical area due to schools, jobs, family etc being near by.
As you can see it’s not all doom and gloom and there are solutions out there. However, it is absolutely crucial that action is taken as soon as possible before the situation gets out of hand. One such company that specializes in helping out distressed sellers is Easy Home Sales. “
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.