The thought of losing your home under any circumstances can be extremely frightening, stressful and depressing. However, when you’re losing it because of home repossession, the results can be even worse. Everything you’ve saved for and dreamed about is suddenly gone. You have to look for a new home for yourself and your family and your credit history is pretty much shot. The future looks pretty bleak for you, doesn’t it?
With the rate of home repossessions so high in South Africa (it has doubled since 2006), many homeowners are dealing with this every day. However, there are options homeowners can take to avoid home repossession and by knowing what these options are, you may be able to keep the home you’ve worked so hard to get.
Every homeowner that is worried about home repossession has different financial circumstances that led to their problem. Some may be severely in debt with all their bills while others may only be having problems with their monthly bond payment. If you fall in the second group, perhaps refinancing your bond/mortgage may be an option if there is enough equity in the home, this will is just one way to stop repossession of your property.
Sometimes, refinancing your bond may be just the help you need to get them back on your feet. The past due amounts are gone and you may have a new monthly bond payment that’s lower and easier to make. For others, refinancing is just a short term solution to help them avoid a home repossession. It’s also a solution that will help preserve your credit history, especially if you’re managing to pay your other debts on time. As bad as your credit history may be, nothing could be as bad on your history as having a repossession listed.
Although this may be something most homeowners in financial trouble avoid doing, talking to your bank should be almost the first step in order to prevent repossession. They want their money but they really don’t want to repossess your home unless they have no other choice. The more willing you are to discuss the matter with them, the more willing they are going to be to help you, especially if you can show them that you are able to repay your bond with a little help from them.
There are several options they can offer you to help lessen the financial burden you’re under and possibly avoid a home repossession. They may change the term of your loan so you’ll have longer to pay but with a smaller monthly bond payment. They may also give you a free grace period where you won’t have to make any monthly payments for a few months. This is often very helpful for homeowners as it gives them the opportunity to catch up on their other debts and restructure their financial situation so they don’t have problems in the future.
Although it’s their least favorite solution, they may also be persuaded to take off some of the balance you owe them. Even though they won’t be getting the amount of money they’d hoped for with principal and interest, they’re still getting their money without having the hassle and cost of a home repossession.
Sometimes even with all these options available, a good solution cannot be found. In situations like this repossession specialists are the best choice as they can swoop in and save the day by paying cash to buy your home. They’ll guarantee a fast sale with no hassle and often will rent you the home or selling it back to you in the future when you can afford it. As you can see, when faced with a home repossession, once you know your options and that there are options, you can avoid losing your home to repossession.
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.