About Me

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I am a qualified Attorney. I specialise in Property Law, Commercial Law, Corporate Law and Trusts.
 
Please visit our website at www.prop-law.co.za for more details.
 
I am an elected Committee Member of the Property Committee of the Association of Pretoria Attorneys and through my involvement, I like to ensure that I am constantly at the "sharp-end" of Conveyancing Practice.

I am the elected Chairman on the Gauteng Council of SAPOA. The South African Property Owners Association (SAPOA) is the biggest and most influential institution in the property industry. SAPOA members control about 90% of commercial property in SA, with a combined portfolio in excess of R150 Billion (about $22 Billion). I am also on the National Council and the National Legal Committee of SAPOA.
 
Member of the Institute of Directors South Africa and Member of the Sirdar Governance Panel.

15 February 2012

What to do if I cannot pay my bond anymore? Know your options

What to do if I cannot pay my bond anymore? Know your options

With such tough financial times at present, more and more people are finding themselves in debt or financially strained.

Failure to pay home loan instalments can lead to the involuntary sale of one's home - but this last resort, and a lifetime filled with debt, can be avoided.

According to Richard Gray, CEO of Harcourts Real Estate South Africa, "It is so important for those individuals facing financial pressures to know the options that are available to them. Harcourts works in partnership with a number of banks which aim to assist such individuals and lead them out of debt."

Reaching the stage where an involuntary sale or sale of execution is mandatory can be devastating. It involves a legal process by which the Court grants the bank authorisation to sell their client's property in order to recover money that is in arrears. In this process, the owner will not only lose their home, but their name will be listed with the credit bureau for many years. This will severely affects their credit rating and will most definitely create problems with all future financing of home loans, cars, the approval of credit cards and the opening of accounts. It could also affect their eligibility for employment and the renting of property.

Instead of waiting until it is too late, a property owner can rather choose a voluntary sales option which will see a bank and selected real estate agents extending their professional help to the property owner. There are a number of benefits that banks offer to distressed clients, some include: discounted commission from estate agents, discounts of existing loan balances should the sale of the property not cover the debt, and 0% interest on shortfall repayments and extended repayment periods. "Essentially, when a home-owner is going through a difficult time, this really should be the only option," says Gray.

In many cases, distressed sales also offer potential buyers the opportunity to benefit in the purchase of the property. Some banks offer buyers up to 100% bonds on all distressed sale properties, as well as discounts off transfer costs and registration fees. These benefits, combined with a generally lower asking price are able to attract buyers and lead to the successful sale of the property - a win win situation for both buyer and seller.

Harcourts Press Release

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