Posts Tagged ‘repossession’
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 important that you not be shy about getting help 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. In addition, it’s always easier to catch up if you’re not that 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 decreased payments, which may reduce the stress your pocketbook has been feeling. 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. However, 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 choice 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 real estate owners use to save their house from repossession.
Repossession companies will swoop right in and save the day for you by making an offer to the bank to buy your home so it will not be repossessed. Not only is this a great way to help property owners protect their credit rating but they also have the option of renting their house from the repossession company or possibly buying the property back when their finances improve. So, don’t give up hope, repossession is not your only option, there is always some way to stop repossession of your property.
Losing your property due to repossession is not number one of anyone’s list. Although it’s the most feared situation of any property owner, many make the mistake of almost “welcoming” it when they find themselves in the daunting circumstances of not being able to make their bond payment.
Homeowner’s often find they are unable to meet their financial obligations with the bank for a variety of reasons. The reasons may be illness, divorce, death in the family, redundancy, to name just a few. Regardless of the reason, falling behind on your payments can be stressful and frightening. Many property owners feel unsure of what to do and feel trapped so they do nothing. This is a big mistake, there are ways and means to avoid repossession of your property.
When homeowners first buy their home and sign for their bond/mortgage, they make an agreement with the bank to make monthly payments until the bond is paid in full. They have full knowledge that if they don’t make the payments, their house may be repossessed. Yet, once they start to have critical financial troubles, they tend to resign themselves to the fact that their home is going to be repossessed without fully understanding the consequences and many effects of repossession.
In spite of what many people believe about repossessions, banks don’t stand to make a large profit when they repossess a home. Homeowners also have the mistaken belief that if the bank repossesses their home and sells it, they’ll get a huge profit and give it back to the homeowner so they can pay off other debts. This is not the way it works when your property is repossessed in this country.
The bank does not care about the value of the home and have no real interest in owning the home or property. All they are interested in is selling the home for enough money to get their money back-only the money that is owed on the bond plus any possible expenses they’ve had to put out involving the repossession.
The home or property will be given to the Sheriff to sell at a Sheriff’s office. This must take place prior to the bank becoming the new owner of the house. The bank will be at the auction to bid on the property; however, they will only be bidding as high as what is owed on the home bond. They’re not concerned with the true value of the home or if they could get more money than is owed. Once the home is finally sold to the highest bidder, the Sheriff will pay off all creditors and give the balance to the seller. Properties that are sold at a Sheriff’s auction seldom get sold for more than the property owner owes the bank. So, one effect of repossession is that you will lose your house and will not get any of the cash. As previously mentioned you are able to prevent repossession if you assess your opportunities. In any market, selling property can prove to be a taxing task.
Another major effect of repossession is that your financial situation will be affected for many years. If you’ve undergone repossession, you will have difficulty obtaining credit for many years to come. This can and will affect your life in many ways, even possibly more than the actual repossession. These are things that should be considered carefully before you decide repossession is your only option.
Property owners are losing their houses through repossession now more than ever before. 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 property owners 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. Actually, 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. The 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 personal circumstances such as bad 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 big mistake.If you choose to deal with the problem and the bank sooner rather than later, you’ll better your chance of keeping your property rather than having it repossessed.
Just giving up on your house 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 history. 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 house, 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 now to help yourself!
At the first sign of financial difficulty that you know will prevent you from paying your bond, contact your bank. They honestly do want to help you. When a home is repossessed, no one really wins. They are going to be more lenient and able 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 property. 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. Selling property is not a trivial task so this holiday period can really help one out. Another option they may offer or you can suggest is increasing the term of your bond. This will allow you reduced payments. Your only option to get these offers, however, is to contact your bank and let them know about your situation.
There are few things in life that are more hectic and scary than the thought of having your property repossessed and losing everything you have. Yet many homeowners are being faced with this very daunting and devastating possibility. When property owners are threatened with losing their house because they can no longer make the bond payment each month, it’s frightening and extremely depressing.
You start getting threatening letters in the mail and it seems like your phone just won’t stop ringing from the constant debt collectors. Your first instinct is to take the phone off the hook, don’t read the mail and lie down and cry. It’s doing these things that cause many property owners to actually lose their house when there may have been answers to their problem.
The rate of home repossessions in South Africa has been very high in recent years and many homeowners may have been able to prevent losing their home if they would have been prepared and not chosen to ignore the problem. Sadly, many people do not know about the alternatives that can prevent repossession. There is help available out there. All you have to do is reach out for it. If more real estate owners in South Africa were aware of some of the possible solutions, the rate of house repossessions would fall drastically.
Many of the solutions that have been mentioned you may already have been aware of but they are essential. Talking to your bank is probably the most important step you can take to prevent repossession. If you contact them as soon as you realize you are not going to be able to make your payments, they will be much more willing to help you work out a solution to help you both. As repossessing a house is pricey to the bank, they do not want to repossess it unless it’s absolutely necessary.
There are several options the bank may offer you to help you lighten your financial load and keep your home. Many banks will offer you a “holiday” or “grace” period where you won’t have to make your bond payments. This period may be from 3 to 6 months and will give you enough time to get your finances in order, pay off other debts, and find employment or whatever needs to be done to help your financial situation.
Extending the term of your bond may also be a great help. Most South African bond agreements are for 20 years. By extending your term to 30 years, you may be paying more interest but you’ll be paying a lower monthly bond payment. You can always revert back to the 20-year term when your finances recover.
Banks may even be willing to decrease the balance on your bond. While this may be the option the bank least likes, they may still consider it because they’re still getting money, even if it’s not as much as they would like. They still consider it a better option than having to go through the pricey and time-consuming process of a property repossession.
If all else fails and you can’t work something out with your bank, don’t waste any time and contact a repossession expert. They’ll not only give you helpful advice but may also buy your property from the bank with cash so it is not repossessed, a process that will devastate your credit history for many years. As we all know, selling property when facing repossession can be a very stressful and daunting time for the home owner as well as their family.
Property owners are losing their houses through repossession now more than ever before. This can be a very daunting experience but one that can possibly be avoided if the correct steps are taken at the first sign of financial problems.
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. Actually, 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. The 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 house owner. There is however light at the end of the tunnel with regard to one being able to prevent repossession completely. Often personal circumstances such as bad 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 improve your chance of keeping your house 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 lenders 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 property 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 happiness. Take action today to help yourself!
At the first sign of financial difficulty that you know will prevent you from paying your bond, get hold of your bank. They honestly do want to help you. When a property is repossessed, no one really wins. They are going to be more lenient and able 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. Selling property is not a minor task so this holiday period can really assist you. Another option they may offer or you can suggest is lengthening the term of your bond. This will allow you reduced payments. The only way you can get these offers, however, is to contact your bank and tell them your situation.
Losing your house because of repossession is dreaded by many people. Although it’s the most feared situation of any homeowner, many make the mistake of almost “welcoming” it when they find themselves in the daunting circumstances of not being able to make their bond payment.
Homeowner’s often find they are unable to meet their financial obligations with the bank for a variety of reasons. The reasons may be illness, divorce, death in the family, redundancy, to name just a few. Despite the reason, falling behind on your payments can be demanding and scary. Many homeowners feel they don’t know what to do and feel trapped so they do nothing. This is a big mistake, there are ways and means to stop repossession of your home.
When homeowners first buy their home and sign for their bond/mortgage, they make an agreement with the bank to make monthly payments until the bond is paid in full. They have full knowledge that if they don’t make the payments, their house may be repossessed. Yet, once they start to have critical financial troubles, they tend to resign themselves to the fact that their home is going to be repossessed without fully understanding the consequences and many effects of repossession.
In spite of what many people believe about repossessions, banks don’t stand to make a large profit when they repossess a home. Homeowners also have the mistaken belief that if the bank repossesses their home and sells it, they’ll get a huge profit and give it back to the homeowner so they can pay off other debts. This is not the way it works when your home is repossessed in this country.
The bank does not care about the value of the home and have no real interest in owning the home or property. All they are interested in is selling the home for enough money to get their money back-only the money that is owed on the bond plus any possible expenses they’ve had to put out involving the repossession.
The home or property will be given to the Sheriff to sell at a Sheriff’s office. This must take place before the bank will become the new owner of the property. The bank will be at the auction to bid on the house; however, they will only be bidding as high as what is owed on the property bond. They’re not concerned with the true value of the home or if they could get more money than is owed. Once the home is finally sold to the highest bidder, the Sheriff will pay off all creditors and give the balance to the seller. Properties that are sold at a Sheriff’s auction seldom get sold for more than the property owner owes the bank. So, one effect of repossession is that you will lose your home and will not get any of the money. As mentioned before you can prevent repossession if you look at your alternatives. Selling property in any market can be a difficult task indeed.
Another major effect of repossession is that your financial situation will be affected for many years. If you’ve undergone repossession, you will have difficulty obtaining credit for many years to come. This can and will affect your life in plenty of ways, possibly even more than the actual repossession. These are things that should be considered carefully before you decide repossession is your only option.
Repossession companies can provide an answer to real estate owners who are struggling financially. If you’re having difficulty making your monthly bond payment, repossession may seem like a real threat to you. Contacting your bank for help is always the first step you should take to prevent repossession. Sadly, many people are ashamed, embarrassed or just plain frightened to contact their bank and admit they’re having financial problems.
What makes matters even worse is when they ignore the phone calls from the bank trying to help them resolve their problems. They wait until it’s almost too late and repossession is an almost sure thing. Then they wonder what they can do besides give up. An answer that plenty of real estate owners are choosing is repossession companies. Repossession companies can do many things for real estate owners who are at risk of losing their house to repossession. Some of these things include:
– Free credit counseling or putting you in touch with help
– Free evaluation of your financial situation
– Services provided with no fee (in most cases)
– Buying your property from the bank to prevent it from being repossessed
– Delay the eviction period
– Renting the property back to you so you don’t have to move
– Selling the home back to you when your finances improve
If you are at risk of having your property repossessed, a repossession company will step in and buy your house from the bank. They won’t purchase it at market value but they’ll usually offer to pay 70% of the market value. Homeowners seldom are able to make a profit when they’re selling their home under these circumstances so the value isn’t a worry to them because they are getting help to avoid having it repossessed. Plenty of real estate owners who cannot make their bond payment and are terrified that their property may be repossessed aren’t sure when it’s a good idea to see a repossession company and this can be the best way to prevent repossession.
Interest rates appear to be continuously increasing every day. When interest rates increase, the payments on many bonds also increase as well as the balance on your bond. If you’re already having difficulty making your payments every month, higher interest rates are only going to make it harder. Here is where repossession companies can really help you.
Repossession companies can step in and offer the bank cash for your home. One of the major pitfalls of losing your house to repossession besides actually losing your property is what it does to your credit history. When repossession companies buy the home for you, you will not have a record of repossession following you for many years, making it almost impossible to get credit for up to 10 years. It is obvious that any property owner would rather avoid repossession of their property and selling property when pressurized can be a nightmare!
Repossession companies can also delay the eviction period for you and, after purchasing your property, can rent it back to you so you and your family can continue to live in your house. Repossession companies are very quick with their services and can complete your sale quickly, which will help your credit and relieve you of the pressure and worry about repossession.
Facing repossession can be a very emotional time in our lives. At the end of the day, as emotional as it is, it needs to be dealt with as soon as possible. It is fairly obvious that if action is not taken as soon as possible that the problem will not simply fix itself. Many home owners unfortunately do tend to have this attitude as they are unaware of how to deal with the situation at hand and it’s a lot easier to just run away from the problem. It is natural to think that you are doomed either way when the bank informs you that they are about to step in and repossess your house. Times like this can put a large amount of pressure on the home owners personal life, and can even be detrimental to their health. It need not necessarily be this way though, the good news is that repossession can be avoided.
It is important to remember that there is no reason to be embarrassed about your situation if facing repossession. These things tend to happen in life and are often caused by no fault of our own. Rather than burying ourselves in our own self-pity, the best thing to do in a situation like this is to take action, and take action immediately in order to stop repossession of your home.
It is natural for most real estate owners to feel like giving up and simply handing the keys over to their bank, however this can have extremely negative repercussions down the line such as obtaining a bad credit record. This generally means that the property owner’s name will be black-listed. Once a home owner gets a bad credit record they will typically be banned from the credit industry for the next 5 – 10 years. Having a bad credit record would also mean that something as basic as renting a home in future may prove to be difficult as most landlords perform credit checks before signing a tenant up. They will also be declined for basically any type of credit application that they apply for. This would include applications for credit cards, shopping accounts, cellphone contracts etc.
Fortunately the news is not all bad and there is light at the end of the tunnel. There are actions one is able to take which could help prevent the repossession and improve the situation drastically.
The actions listed below should be taken by all property owners who are looking to prevent repossession:
– Make contact with your bank as soon as possible and let them know of your dilemma. They will generally be understanding and will respect you for being open and honest. This will also tend to make the bank follow a more lenient and understanding approach when tackling the situation with you.
– Arrange for a longer bond term. If your bond is currently over a period of 20 years, you could request to change the term to 30 years. This will decrease your monthly repayments by a small amount. Even though it wont be a great amount, every little bit helps.
– Try to arrange a ‘holiday’ period. This is typically a 3 to 6 month period in which you do not have to make any bond repayments. This will give the home owner enough time to hopefully get themselves back on their feet.
One of the last things you can try is companies who specialize in helping home owners out of their dilemma. These repossession services are usually made up of a group of property investors who specialize in purchasing houses for cash and as a result provide home owners with an instant and guaranteed home sale before the bank swoops in and proceeds to repossess the home. These repossession services may not offer the full market value for the property, but instead will offer up to around 70% to 80% of the market value for a quick and hassle free sale. This will usually sort out the property owner’s dilemma pretty rapidly as these repossession specialists know how the banks operate.
At the end of the day the idea is to arrive at a ‘win win’ situation where the property owner is helped out of a very stressful situation, the property owner’s account is paid up and their credit history is kept in tact. As a trade-off for providing this solution to the home owner, the property investor gets to buy the property at a slight discount, and everybody is happy. These services will even allow the real estate owner to remain in their house after the sale, renting it back from the repossession company which can be very helpful if the real estate owner intends to remain in their house.
It seems clear that using the services of a repossession company who are able to buy homes for cash far outweighs sitting around and simply ignoring the problem at hand only to have the bank step in and claim everything the property owner owns, and ultimately leaving them with nothing but a bad credit record. It is extremely important that the home owner gets hold of such a service while there is still time to avoid the repossession. Contact Easy Home Sales today to find out how they can help you out of your predicament today.
The recent trends in the economy have affected everyone due to the interest rates which appear to be continually climbing and has caused high living expenses for ost home owners out there. Property owners all over the country have been nailed with these negative aspects in a big way as alot of them out there are extremely nervous at the thought of losing their house via repossession.
At a stage when the property market was booming, lenders were granting money to residents throughout South Africa without being worried about the years to come. However, as they tend to do, interest rates climbed and many property owners are finding that they “bit off more than they could chew”. As a result they find that they cannot make their monthly bond payments. Some have just experienced unforeseen circumstances that have contributed to the financial difficulties like job loss, divorce, poor health or just high cost of living. The good news is that there are ways to stop repossession of your home.
Luckily, not everything is lost for these unfortunate real estate owners. If you are one of these unlucky owners that are worried about losing your property, there is light at the end of the tunnel, selling property is an option no matter what your situatation. There are answers to assist you in getting out of this financial crisis, however you must act soon and not waste time in avoiding the situation and living in denial.
Give your bank a call. As unbelievable as it may seem, financial institutions do NOT want to repossess your house unless there are no other solutions. You may assume that repossessing your real estate will allow them to profit by selling your house which they got for nothing. This is not the way it works. They need to get back the money they’ve borrowed you but with decreasing home values, your home may not even be worth what they borrowed you. If the property is auctioned, goals may not be reached and extra costs will be incurred, as well as time wasted. They will therefore be available to figure out some kind of fee agreement with you either by reducing your bond payments, allowing you a grace period or redoing your bond. Give them a call as soon as you realize you are having financial problems and you may just be able to prevent repossession sooner than you think.
Be prepared and organized. If worse comes to worse and you do find yourself in court having to answer to a judge, make sure you have all your documents and paperwork from the bond as well as a well-writing payment plan you can show the judge to let them know you can pay the money needed to keep your home from repossession.
Contact a repossession company or repossession specialist. Even if you feel you may not need their services, it’s a good idea to contact them to see what they have to say and what kind of advice they can offer. They can help you in stopping repossession. They can also recommend credit specialists that may be able to help you with your financial situation. By being in contact with them, they’ll be ready to help you as soon as possible if it does come to you needing them and their services.