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. Real estate owners who may have started their real estate 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 house falling, 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 homeowners being unable to make their monthly bond payment. The result in many cases is a house 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 solutions to prevent repossession of any person’s house. 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 home repossession and banks will only repossess a home 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 property 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 home and any equity you may have in the home. There are however methods to stop repossession of your property. 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 severely 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 house, 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.
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