Many homeowners remain unaware of the benefits of admitting to financial institutions they are unable to afford the repayments on their home loan, says Adrian Goslett, regional director and chief executive of Re/Max of Southern Africa.
But by working with their banks instead of fighting them, homeowners can recoup their losses and save themselves the stress of having their home put up for public auction.
All banks offer voluntary distressed property sale programmes developed to assist homeowners sell their properties for as close to full market value as possible.
In the event of a shortfall, all the banks offer a generous discount for homeowners who agree to list their homes on the programmes. The resultant shortfall can be repaid interest-free over five to 10 years, depending on the bank and the outstanding balance.
Wayne Manley of Re/Max Independent recently helped secure a sale on such a property. “I approached the family and subsequently managed to obtain a signed offer on this property the day before the auction was scheduled to go ahead.”