Avoid financial ruin. Avoid a bank repossession of your property

Please try and avoid a bank repossession of your property if you can help it.  Keller Williams Select is here to help and we will pull out all the stops.  If you know you are in trouble, financially, and are unable to keep up with your monthly bond repayments, sell your property to avoid a bank repossession.  And do it soon.  According to a very controversial article that Moneyweb, recently claimed just how dire the situation is with repossessions.

We avoiding a Bank Repossession in Cresta

I have first-hand knowledge of a sale that superseded repossession in the Cresta area (see below).  You must read the article here from Moneyweb, you will have a much-needed context.  If as with over 1 million South Africans you lost your job in the last 2 years and you are unable to keep up with your bond repayments, you really need to get started on selling your property.  Before it’s too late.  I am not being a prophet of doom, but bank repossessions are definitely on the increase.  With an unprecedented unemployment rate, a repossession is something you want to avoid at all costs.

Unpleasant facts about bank repossessions

  • The lower valued homes according to Moneyweb that are considered as bank repossessions were sold for about 40% of their market value. This is against 81% for the higher-end valued homes.
  • Moneyweb presented evidence that shows how dozens of properties were sold for less than 1% of their market value. Of the 200 worst cases, these properties were sold for less than 17.2% of their market value.
  • There are no exceptions from any of the big banks. The management of the home loans process and lending institutions have had to resource up to manage growing arrears and repossession numbers.  These really are unprecedented times.
  • Also, the head of the Human Rights Foundation is also not convinced of the banks’ self-proclaimed virtue is that pure, and argues that SA has among some of the most inhumane practices in the world when it comes to bank repossessions.
  • In the middle of total turmoil, economically, thanks to COVID-19, there are millions of people through no fault of their own who have fallen behind on their repayments.  And, bank repossessions are growing, almost daily.

We avoided a bank repossession in Malanshof…

  • Mr. S fell behind with his bond repayments.
  • Then he lost his job early in 2021 after COVID hit and he faced additional health challenges.
  • And this was followed by a scheduled auction of his property for 11 am on a day in November 2020. The opening bid was around R1,2.  He was facing a bank repossession of the toughest kind.
  • Let’s be clear, Mr. S owed the bank R2m. He also had to sign an acknowledgment of debt for R800K.
  • This is when we were called in at the last minute and we presented the bank with a sale of R1,7m.
  • We actually saved Mr. S R500k. Not too shabby.
  • We sprang into action from the minute we knew Mr. S needed help. We worked against the clock too.
  • And, the sale was accepted by the bank and Mr. S and his lovely wife have an acknowledgment of debt for R300k versus R800k. How on earth do you even pay that much money back on a home you no longer live in or benefit from?
  • To view our video link of this true story, click here.

Another story, trying to avoid a bank repossession in Malanshof

  • Victor from Malanshof got sick with kidney dialysis.  He was hospitalised for 3 weeks in early 2020,
  • He then got Covid and at this time I was asked to provide a property valuation which I did and the property at that point was worth R1,235,000.
  • Since then Victor and Barbara got divorced and Victor has been without work for quite a while now.  He has been borrowing money from his family to pay bills but he is basically behind on everything.
  • The bank send a very scary letter called Section 86(10).  This is called “The Termination Notice”.  And it’s not pleasant.
  • In early October of 2021 when Victor was almost R60,000 in arrears, Barbara the now ex-wife called in a panic and asked for some advice.
  • My advice,  jump into 1st gear and list the property and sell it for more than the bank would sell it for.  This would also mean a smaller AOD or Acknowledgment of Debt.
  • This is not a good situation at all because the bank does not have to accept my efforts to help.  They are interested in salvaging ‘their’ asset.
  • With quite a bit of work under enormous pressure, I listed the property with some initial photos which will be upgraded to professional photos and an HD video.  I have listed the property for R1,099,000 which is well below the original valuation?  Why?
  • The property has fallen into disrepair.  The garden is a mess, the house needs painting.  It’s a dire situation and not a nice home to sell.  But I need to try.  I will write a further article on how this sale goes in the coming days.
  • I am doing an open hour tomorrow, Thursday the 21st of October and already have buyers lined up.  It was a quick message to my KW colleagues who all jumped on board to help with the sale of this property and to stop the bleeding for Victor who was awarded the house in the divorce settlement.

What’s the market like at the moment?

It’s brilliant…..  But, do yourself a favour; check out a recent article from Business Insider SA.  2020 was a bumper year for the property market and also the banking sector in terms of lending.  In addition, the even better news is that more and more buyers are getting their asking price.  In short, we can expect further devastation that comes with further job losses grows, the property prices are expected to drop by 6% this year (2021).  And finally, we all expected total doom and gloom last year, expecting house prices to drop by between 5% to 15% but the house prices actually increased by 2%.  There has never been a better time to sell to avoid a bank repossession.

Timelines to sell before a bank repossession?

  • It will take 2-4 months to sell your home; it could sell in under a week if it’s priced right. If as a Seller you want more than the market will pay you will have to accept a much longer period of time.  Sadly it’s the market that decides what to pay for your home, not you, and not you or your agent.  It’s the buyer that decides the price!
  • Then add another 3 months for the registration to take place.
  • The result is that you could be looking at 7 months to find some financial relief.  And when the relief comes you know your seller needs to start over at the bottom of the staircase.

Let us help you sell your property before a bank repossession

No matter what your reason for selling your home, is we have the very best agents that would be willing to go the extra mile for you.  And, expert property advice is something we provide daily, be that to sell large expansive family homes or smaller sectional title or freehold units.  Please reach out and let us do a free property valuation for you.

How to start selling your property!

  1. Start with a free property valuation from a reputable agent.
  2. Work closely with your KW estate agent and consider the correct asking price.
  3. Partner with a top agent in the area
  4. Also, ensure that get the very best photos taken of your home. The inclusion of an HD video is no longer nice to have.
  5. Commission… In a dire situation like avoiding a bank repossession commission must be negotiable.  Its the right thing to do!
  6. Then onto the Offer to Purchase (OTP).  A seasoned agent will help to drive up demand which creates competition for your property.
  7. The property transfer process. In addition, please work with a Conveyancer that your Agent recommends.  We work with Conveyancing Attorneys that we know and who we know will provide the very best service to our Sellers and also our Buyers.  In addition, remember that the buyer pays the transfer costs.  Finally, as a Seller, you are looking at around R5,000 (give or take).

Let Keller Williams Select help you sell before a bank repossession?

Keller Williams Select is all about providing you with a top estate agent in your area when you decide to or need to sell.  We know how to address this and it’s simply, WITH SPEED in both examples above.   Your free property valuation and your final listed price must be market-related.  Finally, remember it is in your agent’s best interest to sell your home for as much as possible and as quickly as possible.

Get the big Red Brand behind you in times of need

Keller Williams uses the culture of the brand to generate success.  Keller Williams is also the largest franchised real estate brand in the world.  With almost 1,500 estate agents across SA, what makes Keller Williams different is our value system.  You see the Keller Williams business model is built on sharing.  Meaning that 1,500 agents across SA all have access to you your listing.  Every single one of these agents has buyers for properties that have either been on the market or are currently on the market.  We leverage these buyers across areas and the entire model is driven by a win-win solution for all, or the deal is off.  So, you don’t have 1 agent working on the sale of your property, you have almost 1,500 agents involved.  But you only deal with 1 agent.  And you only have 1 board on your pavement.

Get in touch

So, if you need a valuation done on a property anywhere in Randburg or elsewhere in SA, we can help.  Give us a call on telephone number (064) 549-3123.  Alternatively, drop us an e-mail at kwselect@kwsa.co.za.  We have a vast network of almost 1,500 top Keller Williams agents at our fingertips who are all just dying for the opportunity to partner with you to sell and conclude your property transaction in record time.

If you want to view all the Keller Williams properties across the country click on my website to start the search for your dream home.

Bet on Red.  You will not be sorry.

Estate Agents – want to know more about KW?

Keller Williams (USA) is a top real estate brand to work for.  If you are an estate agent and want to know a little more drop me an e-mail.   If you would like to leverage world-class technology to the benefit of all our stakeholders across the value chain and end up with a win-win every time, then let’s touch base.  Also, read what makes Keller Williams the best!

Property Advice

Need to read up on more articles that you may find valuable, be sure to read through some of our content and advice: