“If you’re in arrears with your bond, the first thing that comes to mind is to go to the nearest estate agent and attempt to get a sale in order to settle your outstanding bond amount. This is a viable solution, however an estate agent may not be able to give you a sale quick enough for you to actually prevent the banks from repossessing your property. Even if you did manage to sell the property, one of the main issues would be that you would need to leave the property, luckily solutions do exist whereby you are able to remain in your home.
The solutions mentioned here are referred to as ‘Sell And Rent Back’ solutions. This is where the home owner approaches a repossession company that is able to buy houses for cash, and are able to provide the home owner with a quick sale to prevent the repossession of their property, and then allows the home owner to rent the property back from them. Most of these companies will even allow you to buy the property back from them if your situation improves later on down the line.
So, what would be involved in dealing with such a company?
After having a chat with them over the phone (or in person) they will assess your situation and often will give you an offer to purchase you property on the spot. They understand that things need to move fast in order to beat the banks stepping in and ending it all. If you decide to rent the property back from the repossession service, they will normally give you a rental quote on the spot too, as well as ask you how long you would like to rent the property back for. A lot of these companies are able to rent the property back to you for life if this is what you require.
These repossession services that buy houses for cash are well linked up with top-notch attorneys meaning that the sale could be complete in 6-8 weeks as opposed to the usual 3 to 6 months in South Africa. These repossession services will even arrange bridge finance for you allowing you to access some of your funds before the actual sale completes. This can be very handy if you are having cash flow problems at the time. The important thing to keep in mind is that once you have reached an agreement with the repossession company and the sale process starts, your repossession is halted immediately. The banks will now be happy because they are assured that someone is purchasing the property and they will be recouping their losses in the near future.
Sell & Rent Back solutions can be a great way to avoid repossession and remain in your home as they are very flexible by nature. Everything is negotiable and the repossession service will often only charge you a monthly rental amount that you can afford on a monthly basis. At the end of the day it is about providing the distressed home owner with a viable solution whereby both parties are happy at the end of the day.
So, don’t forget that there are always options and solutions out there. The important thing is to contact one of these repossession services before its too late. Once the banks have steeped in and actually performed the repossession then there is not much anyone can do for you. However, by approaching one of the experts fairly early in the process can almost always help you out of your this problematic situation. Easy Home Sales is a specialist service that specializes in ‘sell and rent-back’ solutions for sellers in financial trouble.”
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.