Knowing About Property Repossession
We are hit with many predicaments and catastrophes every day but none can be worse than experiencing a house repossession. Sadly for many property owners, house repossession is something that more and more people have to experience, often through no fault of their own. We’ve suffered some very difficult financial times what with the continually increasing interest rates as well as inflation and the economy in general.
As bad as the prospect of a home repossession may seem, you don’t need to just give up and accept what you think is inevitable. You may be in for some stressful times ahead while you try to save your home but there are things you can do to stop a home repossession. Home repossession is a constant and very real threat when you fail to make your monthly bond payment for your home. While everyone is late occasionally and many people are finding it difficult to keep up, the bank will take steps to repossess the home if consecutive months are missed. The idea of selling property then crosses the seller’s mind.
If after contacting your bank you still find that it is almost impossible to keep up with your payments, the next option may be to sell your home before the bank has a chance to repossess it and sell it at a Sheriff’s auction. When it’s sold at a Sheriff’s auction, the bank will only bid as high as the amount that you owe the bank and possibly to cover fees. Any thoughts you may have had of making a profit after the bond is paid off, you can stop having! Yet there is some good news, and that is that it is undoubtedly possible to prevent repossession of your property.
When faced with a possible home repossession, many homeowners try to sell their home on their own. With inflation and the economy as it’s been, many homes have decreased in value the past few years, making it hard to even sell the home for enough to pay off the bond. There are also many expenses involved in selling your home, which a person facing repossession often can’t afford. Another negative about trying to sell your home on your own is that there often isn’t enough time to get it sold before the actual house repossession takes place even though it takes a few months.
These are all stressful events that can add a lot of frustration into the family’s property. A much easier option, when all else fails, is to contact a repossession company to buy your home. They’re fast at what they do and will usually make the bank an offer within a day or two of meeting with you. They’ll only offer around 70% of the market value but this is still better than the alternative, which is losing the home and having it on your credit history.
Repossession companies can often delay your eviction so you won’t have to worry about being kicked out and having to look for housing. This is another great solution to prevent repossession of your house. They’ll also rent the home to you, which makes it easier if you have children in local schools or a job nearby. They’ll do everything possible to make this horrible time in your life as stress-free as possible. They also may offer to sell you your house back when your finances are in better shape. While repossession companies may be your last option and only when you can’t work with the bank any longer, they are a much better option than losing your property and your credit worthiness.
You Should Never Have Repossession As An Option
Home ownership is one of the greatest joys a person can have. They often save for years to be able to buy or build their dream house. Their lifelong dream of raising a family and growing old in their home can almost become a nightmare when unforeseen circumstances make it almost impossible to make the monthly payments required to keep their property.
Unforeseen circumstances such as redundancy, divorce or separation, or death are just a few of the many things that can change a person’s financial circumstances and cost them their house if they’re not careful. As terrible as many of these circumstances may be, they’re often not the fault of the real estate owner. Yet every year, thousands of property owner’s in South Africa are victims of financial circumstances causing them to have their home repossessed. As well as this, it is not easy selling property in a depressed market.
Property owners who are at risk of losing their property should always contact the bank at the first sign of financial difficulty. Waiting too long often makes it too difficult to catch up on your own and makes the bank look negatively on you as a creditworthy customer. Banks, in spite of their reputation, are willing to help you and do not wish to repossess your home. No one wins when a bank repossesses a home.
The homeowner has lost their home and all the money they’ve stuck into it so far and the bank has to spend a lot of money and time to go through the repossession process. So, contact your bank if you are having trouble making your bond payment. The bank may have many options available to help you get out of your financial mess and get you back on track. They’ll often extend the term of your bond so your payments will be smaller, lower your interest rate or even lower your entire balance.
Plenty of customers who are faced with repossession request a “holiday” period in which they aren’t required to make any monthly bond payments for 3 to 6 months. This period gives them a chance to catch up on their bond payments as well as other bills they have. If their financial problems came about as a result of a job loss, this is often enough time to find a new job. The banks are willing to help you if you contact them and they feel you are able to repay your bond in the future. This is the first thing you should actually do when attempting to stop repossession of your home.
Unfortunately, some people wait too long or their finances get so bad that they just can’t continue to make the payments. In cases like this, they often feel that repossession is their only option. That’s what they’ve been lead to believe: if they don’t make their payments, their home will be repossessed. Yet there are ways to prevent repossession.
Repossession companies, however, are available to help homeowners struggling to avoid repossession. They can help you by giving you free financial help and advice or buying your home from the bank so it doesn’t get repossessed. This is a great option for homeowners who would otherwise lose their home to repossession. Their credit history is not totally destroyed from having a repossession black-listing them and keeping them from getting credit in the future.
Repossession And The Relationship With Your Bank
Bankers have had the reputation with customers for being very stiff, procedural and harsh. Many people also believe that bankers will not waste time starting legal action against real estate owners who 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 the economy. After all, selling property in a depressed market can be a daunting task
A lot of properties have lost a significant amount of their value and are not even worth as much as the borrower owes on their property 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 won’t know you’re having financial worries or the reason why unless you tell them about it. You need to have a good relationship with your bank if you want them to help you to prevent repossession of your house.
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 humiliated. 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 to 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 won’t help just anyone who says they need assistance in avoiding repossession of their property. They’ll talk with each customer and evaluate the situation and help those who they feel need help to keep their property.
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 they can be of assistance to you.
Repossession Doesn’t Have To Be The Only Outcome
For a homeowner, facing repossession can be one of the most emotional and stressful times they could ever experience. Regardless of how you got in that financial situation, whether from health problems, job loss, death in the family or just too many bills, it’s important that you make every effort to straighten the problem out as soon as possible.
Too many homeowners are ashamed and embarrassed to admit they can’t meet their monthly bills and continue to miss their bond payment. It’s crucial that you not be afraid of requesting assistance from your bank. Even though banks are known for having deep pockets and getting legal assistance when customers don’t make their bond payment, they will only repossess your home if you leave them no choice.
Contact the bank as soon as you see you are having financial problems. The earlier you contact the bank, the more willing they are going to be to help you. Additionally, it’s always easier to catch up if you’re not too far behind. There are a number of options you can propose to your bank that could help you save your house and prevent repossession. As you may know, selling property is not an easy task.
Banks often offer a “grace period” or “holiday” period to help customers that are having trouble keeping up with their bond payment. This is a certain number of months, often 3 to 6, where the customer doesn’t have to make their bond payment. This is often the easiest way for the customer to get caught up on the bond payment because it allows them time to get their finances in order and pay off other debts that may have been making it difficult to make the bond payment.
Asking your bank to give you a longer bond term may also be very useful. Most home bonds/mortgages are for 20 years. If you have your bank extend it to 30 years, you’ll have reduced payments, which may decrease the stress your pocketbook has been experiencing. You will be paying more interest with a 30-year term but your payments will be smaller. When your finances are in better shape you can always ask the bank to change it back to a 20 year bond. But, in the meantime, it will help you out.
The important thing to remember is that all hope should not be gone because you’re behind on your bond payment. Repossession doesn’t have to be the only option left for you. Even if you’ve waited too long to contact your bank, there are still options available for you so you can save your house. Repossession companies are one option that many homeowners use to save their home from repossession.
Repossession companies will swoop right in and save the day for you by making an offer to the bank to purchase your house so it will not be repossessed. Not only is this a great way to help homeowners protect their credit rating but they also have the option of renting their home from the repossession company or possibly buying the home back when their finances are better. So, don’t give up hope, repossession is not your only option, there is always some way to stop repossession of your home.