How to prevent your home from being repossessed
Category Property Advice
If you can no longer afford your monthly bond repayments you may be at risk of having your home repossessed by your credit provider. Because the money you borrowed to acquire the house must be returned by the creditor, they have the right to cancel any existing arrangements to recover the monies owing.
Here are some ways you can prevent your home from being repossessed:
Be frank with your credit provider
One of the easiest strategies to avoid foreclosure is to not avoid your creditor's calls or emails. They can, in fact, provide you with a variety of solutions to assist you to discover a way forward.
One alternative is for them to give you a cooling-off period that is added to your lending duration. Another option is to prolong the repayment duration on your loan. For example, if you have a 20-year payment plan, you can increase it to 30 years. Keep in mind that while this can simplify your payment arrangement, you will pay extra interest. Once you have some financial security, you can always adjust it back to 20 years.
Analyse your budget
Have you ever considered that you may be in more debt than you should be? This may be preventing you from making your monthly bond payments. Analyze your monthly budget thoroughly to identify areas where you might access money.
Consider eliminating pleasures like eating out, purchasing additional clothes, and even pausing or cancelling streaming services. Remember that these cuts are just temporary and that keeping your home is necessary.
Increase your income
Another approach to save your house from being repossessed is to improve your financial situation. Working overtime can help you supplement your present salary. Speak with your boss and make arrangements for extra work. It would be ideal if you could complete these tasks at home so that you do not miss out on family time.
If your employer does not allow you to work extra hours, you could take on a second job. Perhaps you enjoy taking photographs - consider selling your skills or interests. Family portraits, birthday parties, and even wedding photography might help you earn more money.
If you don't have the extra time to take on more jobs, selling your belongings can help. Begin with items you do not need, such as a second television set or a new set of tableware you will never use.
Selling your vehicle may be a possibility as well, as you will save money on insurance and petrol. However, you should evaluate the benefits and drawbacks before doing so.
While it may not be the best option, selling an investment or stock may be a realistic choice.
Sell or rent out the property
Even if you adore your home, you may find that you can no longer afford it due to unanticipated circumstances. Consider selling or renting out the home before going into arrears.
Assume your monthly obligations, including rates and levies, total R8,000. After chatting with a real estate agent, you learn that the property can be rented for R6,000 per month. If you can live with family members or rent a smaller and less expensive home while still paying R2,000 (plus the R6,000 rent), you will be well on your way to financial independence.
If this alternative does not work for you, selling the property to pay off your debt may be your best bet. If you sell your home for R900,000 but owe the bank R500,000, you will still make enough money to put down as a deposit on a more affordable home.
If you are facing financial difficulties and need to sell your property or purchase a more affordable one, contact Seeff Hillcrest & Kloof. Our dedicated agents will assist you in any manner they can. Remember, there is always a light at the end of the tunnel.
Author: Seeff Hillcrest & Kloof
