Having financial difficulties and not being able to make your bond/mortgage payment is nothing to be ashamed about yet many people are both embarrassed and ashamed when they have this problem, which could ultimately lead to repossession. Rather than bury your head in the sand and pretend the problem doesn’t exist, you need to get it in the open and talk about it at the very start of your financial difficulties.
The longer you ignore this looming repossession problem, the worse it’s going to get for you and the bank, Also, if you wait too long to deal with the problem the bank is not going to be quite as willing to help you and stop repossession of your home. Banks do not like repossessing homes because it is a hassle for them and it costs them money but they will be more willing to help you in the beginning of your difficulties rather than waiting until you are in serious trouble.
Financial advisors or accountants can often be very helpful during this difficult time in your life. If you know of an accountant or financial advisor, don’t be afraid to contact them about your problems and don’t feel ashamed. They are trained to help you and can look at your financial situation and come up with suggestions that may help you or they can recommend someone that can give you free help with your financial situation in order to help prevent repossession of your home. Not only can they help you with your financial predicament but they can also do it very quickly before too much time goes by.
When homeowner’s get into financial trouble where they can’t make their bond payments and they are faced with a looming repossession, this is usually not the only bills they have trouble with and is often not the beginning of their problems. Usually people can’t make their bond/mortgage payment because of the many other bills they may have. It’s always a good idea to make sure the bond payment is the first payment made because it’s for your home.
If you can only afford to make so many payments each month, make sure the bond/mortgage payment is the one that gets made. Unfortunately, because the bond payment is usually the largest, it’s the one that gets neglected. This is a bad idea and may cost many homeowners their home. Once they fall behind on their home payments, they soon fall behind on other bills and they just get exhausted and give up, feeling that having their home repossessed will be the end of the money worries.
Don’t let shame and embarrassment cost you your home. You’ve worked too long and hard to get your home so don’t lose it because you’re ashamed that you can’t make the payments. There are many people out there willing to help you starting with your bank. If you’re having problems, the bank wants to help you. If you’re not comfortable telling your bank your problems with money, financial advisors or accountants can often help you sort out your bills and help you work with creditors to help you get your payments made.
Property investors can also help out if nothing else is working for you. They often buy homes from the bank before they are repossessed. They may buy them for less than market value but it’s usually enough to pay off the bond. Another high point of a property investor buying the home is that they often allow the homeowner to continue to live in the 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.