Repossession - How To Stop It Now
Home repossession is probably the most stressful and daunting experience a homeowner can go through. There is no blow quite as devastating as knowing you’re going to lose your property. Everything you’ve saved for and dreamed about will be gone. As horrible as this sounds, hundreds of people in South Africa, as well as other parts of the world, go through this every year. Their most valuable asset, gone.
The Economy has been very hard on everyone with soaring interest ratings and inflation that just won’t seem to slow down. Homeowners that may have started their home bond paying a low interest rate are now paying a high rate, making it very difficult to keep up with the monthly payments. Some property owners have had to refinance and have two mortgages on their house. With the value of their home decreasing, refinancing is not an option to help them keep up because the equity is just not high enough.
Unforeseen circumstances often cause financial difficulties to homeowners as well. A well-paying job they may have had when they bought their house may no longer exist. Death in the family, divorce, separation or the high cost of living may all contribute to property owners being unable to make their monthly bond payment. The result in many cases is a property repossession. They knew this was a risk when they signed the bond agreement with the bank but never thought they’d be in such a frightening situation.
If any of these circumstances sound familiar to you, don’t give up and feel repossession is your only choice. There are ways to prevent repossession of any owner’s home. There are several options. Contacting your bank is always the first step that should be taken. Don’t wait for them to contact you and ABOVE ALL don’t avoid talking to them. If you’re honest with them about your situation and believe there is a way that you can catch up, they’ll want to work with you. No one wins in a houe repossession and banks will only repossess a houe if there is no other choice for them to get their money back.
Many people tend to give up and feel that repossession is their only answer. They even mistakenly believe that the bank will sell their house and give them any leftover money after the bond is paid and they can start over. This isn’t how repossession works here. The bank will bid on your home at a Sheriff’s auction and will only bid as high as the amount you owe them. So, you will lose your property and any equity you may have in the property. There are however methods to avoid repossession of your house. Selling property to the public isn’t one of these methods when you are experiencing time restrictions with your bank.
Your credit history will also be badly damaged with a record of repossession. You’ll be black-listed and won’t be able to get credit for up to 10 years. If you thought things looked bad before you lost your property, you’ll find out they are a lot worse after repossession. Repossessions often go so quickly so you won’t really have time to try to sell your home and get a decent price for it.
If you aren’t able to work out a compromise with the bank, your best option may be to contact a repossession company to help you. They’ll quickly buy your home from the bank so you won’t have repossession on your history. You may also be given the option of renting the home from them or buying it back when your financial situation is better. Although many consider repossession companies as a last resort, it’s often the perfect choice to stop a home repossession.
Guidelines For Preventing Repossession Of Your House
There are probably few things that are more feared by property owners than the prospect of losing their house. Being a real estate owner and having a house to provide for your family is a dream of many but one that can quickly turn into a nightmare when there is a chance of having it repossessed.Having your property repossessed is not only a very stressful experience for the home owner and their family but can also affect their future financial stability.
When you sign your bond or bank mortgage agreement, the terms and conditions state that they can repossess your house if you fail to make your monthly bond payments. You may suddenly have difficulty making your monthly payments due to circumstances that are not your fault such as job loss, divorce, and death of a family member or similar situations. However, the bank has no way of knowing why you are not making your bond payments as promised. And if you are mulling over selling property to avoid trouble, it may be trickier than you think.
Banks will usually contact you by writing or telephone when your payment is one month past due. Don’t make the common error of avoiding their phone calls. Be brave and honest and explain to the bank what the situation is so they know where you stand and what they can do to help. Do not make promises to pay a certain amount by a certain time period if you really don’t believe you can keep your promise. This will only make things worse for you with the bank. Don’t be scared to request assistance from them as it may be the answer to being able to avoid repossession. There are many ways banks can help homeowners keep their home but they need to know you want and need their help.
Banks do not like repossessing homes, in spite of the reputation they may have for being harsh and penny-pinching. They do not want the expense and headache of having to repossess your property and sell it at public auction just to get their money back. This is expensive and time-consuming for all involved, not to mention what it will do to your credit history!
Repossession of your home can have your credit black-listed so you won’t be able to get any type of credit for anywhere from 5 to 10 years. This does not apply just to bonds for homes but credit cards as well. Even landlords do credit checks before they will rent property. So, don’t make the mistake of thinking that having your home repossessed will be the end of your financial worries. It will be the beginning of troubles you may have for years. You can prevent repossession of your house by contacting your bank, getting credit counselling or contacting a repossession company.
Repossession companies may not be able to help you with your bond payments but they can purchase your home from the bank so it is not repossessed. They will also give you the option of renting your house from them or buying it when your financial situation gets better. Most people choose this as a last resort when there is nothing more that can be done to avoid repossession.
Repossession Should Never Be A Possibility
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 property. Their lifelong dreams of raising a family and growing old in their home can become a nightmare when unforeseen circumstances make it almost impossible to make the monthly payments required to keep their house.
Unforeseen circumstances such as redundancy, divorce or separation, and death are just a few of the many things that can change a person’s financial circumstances and cost them their property 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. Nevertheless, every year, thousands of homeowner’s in South Africa are victims of financial circumstances causing them to have their home repossessed. Also, it is a tough task 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 property. No one wins when a bank repossesses a home.
The property owner has lost their property 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 problems 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.
Many customers facing repossession will request a “holiday” period of 3 to 6 months where they don’t have to make any monthly bond payments. 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. But 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 real estate owners who would otherwise lose their house to repossession. Their credit history is not totally ruined from having a repossession black-listing them and keeping them from getting credit in the future.
Prevent Repossession - Be Aware Of Your Options
Becoming a real estate owner is everyone’s dream. Regardless of where you live or whether you’re single or part of a large family, owning a house is a dream shared by most. Although many people are able to buy a home, not every homeowner is lucky enough to be able to keep their home.
Financial difficulties often make it impossible to continue to make the bond payments, which often make the bank start the repossession process. This can be a very stressful and frightening experience for the homeowner and their family. Sometimes they have trouble making their bond payments because of redundancy, health problems, death in the family, divorce or similar problems. Occassionally they are forced to sell, and selling property when stressed and under pressure can be a nightmare task.
Too many property owners suddenly give up and think they have no choice but to lose their property just because they are having financial difficulties. What they don’t realize is that they have options to help them avoid repossession.
Contact your banker as soon as you start having difficulty making the bond/mortgage payments. This option is listed first because it’s probably the most important. The bank is probably willing to help you keep your house because they often lose money when they have to repossess a house. They can’t help you, though, unless they know you need help. This is important if you plan to stop repossession of your home.
Ask your banker about a “holiday” or “grace” period. This can be from 3 to 6 months and it is a period where you don’t have to make any payments. Often this amount of time gives the homeowner enough time to evaluate and improve their financial situation. This may include finding a new job, paying off other debts or awaiting payment that may be owed to you by someone. Banks are usually willing to help with this if you’re honest with them and don’t wait too long to talk to them.
Ask that the term of your bond be increased. Many bonds are set up for a term of 20 years. By having the bank extend the term to 30 years, your payments are going to be smaller and possibly easier to make. It’s important to remember that you will be paying more interest on your bond but your monthly payments will be smaller. If your financial situation improves in the future, you can always revert the loan back to 20 years again. This is just one reliable way to prevent repossession.
Your bank may be willing to negotiate on the overall debt total. This can help you in many ways including less interest, smaller monthly payments and shorter term on your bond. The bank may not get as much as they’d hoped for but they’re going to get what they need so they are still making money and you’re keeping your property. The bank would much rather help you this way than have to go through the expense of repossessing your house.
Contact a property investor or repossession expert for help. Although this may be a last resort, it can also turn into one of the best options. They will often step in and buy the property from the bank before it can be repossessed and sold at auction. Another reason this option works for many real estate owners is because they are often allowed to rent and continue to live in the house.
As you can see, as daunting and stressful as the situation may appear, there are options you can take to avoid repossession. The important thing is to check on these options as soon as you begin having difficulty making your bond/mortgage payments.