Bankers have had the reputation with customers for being very stiff, procedural and harsh. Many also believe bankers will not waste time starting legal action against homeowners that fail to make their bond payments. Although some of this may be true, banks are also willing to help homeowners that are having difficulty in making their bond payments. When banks have to start repossession on a home, it takes a lot of time and money. They seldom come out ahead, especially with the market the way it’s been due to economy.
Many homes have lost a lot of their value and are not even worth as much as the borrower owes on their home bond. So, the banks really do want to help you find a solution where they’ll get their money and you can keep your home. However, they don’t know you’re having financial worries or the reason why unless you contact them. Having a good relationship with your bank is very important towards your financial situation and being able to prevent repossession of your home.
The unfortunate truth is that many homeowners feel shame and embarrassment because they are late on their bond payments and tend to pretend the problem does not exist as though ignoring it will suddenly make it go away. All this does is allow them to get further and further in debt, leaving them feeling even more hopeless and embarrassed. A simple call to their bank could help get rid of those negative feelings and get them back to where they should be financially.
Banks are fully aware of the rising interest rates and how they’ve negatively affected borrower’s ability to make their monthly payments. They understand and are willing to help when the homeowner’s are willing be open and honest with them about their financial problems, what caused them and what the homeowner can do to help the situation. The banks are not going to help just anyone that says they need help in order to stop repossession of their home. They’ll talk with each customer and evaluate the situation and help those that they feel need help to keep their home.
Homeowners having difficulty making their payments need to contact their banker as soon as possible and explain the situation to their banker so they can offer assistance. It’s also important that the homeowner realize that it’s not the banks fault that they’re having difficulties and they should not take their frustrations out on the bank. The better relationship they have with their bank, the more willing the bank will be to work with them in helping them keep their home.
Many people hear rumors or hearsay about an individual having difficulty keeping their home and working with a bank. Each situation is different, so don’t assume that it’s the bank’s fault and fail to contact them when you need their help. Just because the bank was not able to help one homeowner doesn’t mean that they won’t be able to help you. They evaluate every financial situation and customer differently and will offer their help based on that situation. So, don’t presume to know if they will or won’t help you to avoid repossession. Give them the chance to show you how helpful they can be.
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.