Don\u2019t let pride trip you up<\/p>\n
Admit that you need help<\/p>
Contact your bank<\/h3>\n
Fear of your home<\/strong>\u00a0<\/a>being repossessed is probably unfounded. But defaulting on your\u00a0bond\u00a0repayment will not only result in you potentially losing your property, it will also affect your credit record and lead to black listing. A negative credit record can make renting a property difficult as most landlords do credit checks on potential tenants.<\/p>\n Banks will often assist homeowners where they can by possibly rescheduling the debt or offering financial advice.<\/p>\n Some banks offer payment holidays\u00a0in the case of retrenchments, maternity leave and where a lump sum pay-out from life insurance or an inheritance is expected in the near future. These can vary from one to ten months. Bond holders are not penalised in any way with, for instance, higher interest rates or longer payment terms. Customers are encouraged to make arrangements to repay the arrears amount – from a single lump sum payment to payment over a period not exceeding 12 months. The arrangement will include the normal monthly repayment plus a percentage of the arrears.<\/p>\n In certain instances banks may renegotiate the term of the loan from 20 years to 30 years to decrease the monthly\u00a0bond\u00a0instalment amount.<\/p>\n If the situation has deteriorated beyond the homeowner\u2019s capabilities, they are advised to consult a professional debt counsellor for a possible solution. Once the counsellor has assessed the situation they will be able to submit a repayment proposal to all the relevant creditors. An application will then be made in court to have the proposed repayment plan granted to ensure that legal action cannot be taken against the homeowner and the bank will not be able to repossess the property<\/a><\/strong>.<\/p>\n Keep in mind that you have a legal obligation to fulfil the terms of your bond agreement and\u00a0you remain responsible and liable for any outstanding balance on the loan account, including the cost of the judgement.<\/p>\n The bank will only initiate the repossession route to resolve the matter after all options suggested by the bank have been exhausted.<\/p>\n If you can\u2019t keep your home, put it on the market.<\/p>\n Selling the property through the distressed property channel is an effective way to recover. Contact an estate agency that handles distressed property<\/a> <\/strong>sales. The banks do work with reputable estate agencies to sell distressed properties at market-related prices. If you have built up some equity, there may be enough money to cover your outstanding\u00a0bond, as well as all or some of your other debt. This option could help you to re-establish yourself and your credit record.<\/p>\n <\/p>\n![\"contact](\"http:\/\/albertonrecord.stg.sites.caxton.co.za\/wp-content\/uploads\/sites\/35\/2016\/09\/contact-your-bank.jpg\")
<\/a><\/p>\nStretch\u00a0the term of the loan<\/h3>\n
<\/a><\/p>\nDo you need a debt counsellor?<\/h3>\n
Sell your distressed property<\/h3>\n
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