More homeowners than ever before are risking losing their homes through repossession, as unfortunate as this may be. This can be a very daunting experience but one that can possibly be avoided if the right steps are taken at the first sign of financial difficulties.
Many homeowners feel ashamed or embarrassed when they can no longer make their bond payments on time. When the bank attempts to contact them, they avoid them rather than face their difficulties head on and stand the chance to stop repossession of their home. Your payments are not going to make themselves and the bank is not going to suddenly ignore the fact that you’re behind on the payments. In fact, ignoring the bank and not speaking to them is only going to make matters worse for you and your family. You are not the first person to not be able to make their bond payments. Economy has taken a hit on many people so don’t feel like you’re alone and helpless.
The possibility of losing their home is a very stressful thought that can damage a person’s physical as well as mental health. In many cases it’s not through any fault of the homeowner. There is however light at the end of the tunnel with regard to one being able to prevent repossession completely. Often circumstances such as poor health or loss of job create problems that cannot be helped. Too many homeowners facing a potential repossession feel they are going to lose their home regardless of what they do, so they do nothing. This is a huge mistake. If you choose to deal with the problem and the bank sooner rather than later, you’ll increase your chance of keeping your home rather than having it repossessed.
Just giving up on your home and turning the keys over to the bank can cause many serious consequences for you and none of them good. Your name will not only be black-listed at banks and financial institutions but you’ll also have a very bad credit record. If you do get black-listed or damage your credit record, you’ll most likely find yourself banned from financial institutions from 5 to 10 years. Having a bad credit record will make it impossible to get another bond for a home, get approved for credit cards of any kind, cell phone accounts or even rent a home as almost all landlords do a credit check before renting out their property. In other words, losing your home to repossession will just be the beginning of your financial difficulties. Don’t let a potential repossession ruin your life. Take steps today to help yourself!
At the first sign of financial difficulty that you know will prevent you from paying your bond, contact your bank. They really do want to help you. When a home is repossessed, no one really wins. They are going to be more lenient and apt to help you when you contact them rather than making them “hunt you down” with letters and repeated phone calls that get ignored.
The bank may have different options to help you get through your rough spot. A holiday period is often an option banks offer to their customers to help them keep their home. This may give you from 3 to 6 months where you don’t have to make any bond payments. This holiday period will give you time to get your finances in order. Another option they may offer or you can suggest is lengthening the term of your bond. This will give you lower payments. The only way you can get these offers, however, is to contact your bank and tell them your situation.
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.