Facebook Twitter Instagram
    Running Wolf's Rant
    Latest News
    • Imagine Dragons Announce 2023 SA Tour Dates
    • Dan Mace discovers incredible musical duo
    • Phil Gregory Releases New EP: “22” – Not Out
    • Daniel Baron Releases Powerful Emotional Ballad: “Roses”
    • OneRepublic Announces 2022 South African Tour Dates
    • Van Der Aven Reik Eerste Afrikaanse snit “Heimwee” Uit
    • SAMA28 Nominees Announced
    • The Incidentals release debut single: “Trippin’ on Tar”
    Facebook Twitter Instagram YouTube RSS TikTok
    Home
    • Categories
      • Entertainment
      • Facts
      • General News
      • Hacks
      • Opinion
      • Photography
      • Quotes
      • Technology
    • Pages
      • Interesting Music Facts
      • Music Events
      • South African Artists & Bands
      • South African Live Music Events, Venues & Festivals
      • Submit Music Facts
      • Submit Music Festival Stories
    • Featured
    • Contact Us
    • Privacy Policy
    Subscribe
    Running Wolf's Rant
    Facebook Twitter Instagram YouTube RSS
    Home»Hacks»How to hold onto your house in a time of COVID-19

    How to hold onto your house in a time of COVID-19

    Staff WriterBy Staff WriterSep 8, 2020 Hacks 5 Mins Read5 Views
    Share
    Facebook Twitter Email Telegram WhatsApp

    Struggling to hold onto your house thanks to COVID-19 lockdown layoffs? Your flat or house is probably your most important asset and a great source of emotional comfort ‒ but given the pandemic layoffs and precarious economy, you may be concerned that you could lose your hard-earned property. What are the chances of your home being repossessed, and what are your rights in fighting back?

    South African law allows that, if you default for three months or more on your monthly mortgage payments, the bank or other mortgage lender may cancel the agreement, repossess your house, and sell it in order to recover the outstanding money you owe them.

    Holding Onto Your House

    Previously, court rules allowed repossessed homes to be sold without a reserve price.  Fortunately, more stringent rules have since been put into place. There were many heart-breaking stories of banks repossessing homes when an owner was three months in default, and the property was sold at a sheriff’s auction for less than the amount outstanding. This is despite banks trying to get as much as they can for their clients and is largely determined by market conditions. In these instances, the customer was left without a home and with potentially lifelong debt.

    If you are concerned that you could find yourself in a precarious situation, there are several options to explore immediately.

    JustMoney’s commercial manager, Sarah Nicholson comments

    “There are actions to consider if you cannot afford your home. You can consider renting out your property, restructuring your loan over a longer term, or, if you have problems repaying multiple loans, you could consider debt counselling. Rather than changing your cellphone number and hiding from your creditors, it’s far better to approach the bank and have an honest conversation about the situation you find yourself in.”

    See JustMoney’s article on possible solutions if you cannot afford your home here. If you have always paid the monthly loan amount, and in full, and have little outstanding debt, the chances of holding onto your house are far better than if you have been on a rollercoaster ride for some time. Read an article on asset repossession and what banks want you to know here.

    You may decide there is no option but to sell your home. This way, you are likely to get a better price and avoid going through the stress of a legal process and associated costs. Some banks have developed their own systems and tools to help their customers to sell their properties and could support you in the process. Read a JustMoney article on the benefits of selling your home pre-legal action here.

    Should you continue to hide under the duvet and default without communicating, a representative of the bank will contact you by phone or in writing. Depending on the situation, they should initially offer you options such as spreading the bond over a longer period, or receiving debt counselling. Should you receive a section 129 notice, this is the final step before the legal process begins. It will inform you that you are in arrears for a certain amount at a given date. This notice is issued in terms of section 129 of the National Credit Act. Find out more about a Section 129 letter here.

    Nicholson explains this opportunity to hold onto your house

    “See this as a last chance to take action and prevent your creditors taking legal action. Do avoid delays at this stage, as you have only 10 days to apply for debt review. This is the process whereby a debt counsellor assesses your outstanding debt and implements a restructured debt repayment plan.”

    If this process fails, the bank can ask its legal team to get a summons from the High Court or Magistrate’s Court. This is delivered by a sheriff. The bank then has to formally apply to court for the right to auction off your property.

    A judge must check that legal and fair processes have been followed, taking into consideration whether this is the primary residence of the debtor, as well as alternative ways of settling the judgment debt. Banks must show evidence of the property’s market value, the amount owing on the bond and rates and taxes. It is worthwhile checking that this information is all correct.

    If the sale has to go ahead, the money goes towards covering the outstanding amount on the loan and costs. Whatever remains will be paid to you. You can only be evicted from a house sold on auction when the property has been transferred to a new owner. You cannot be evicted before a transfer has taken place.

    Nicholson explains why you should address the “elephant in the room”

    “The current economic climate is really worrying for many people whose household finances have already been under pressure pre-COVID-19. It’s essential to address the ‘elephant in the room’ as soon as possible and get information and help. Check where your money goes, hold a family meeting to talk about finances, and inform yourself as much as possible about your options.”

    You can access plenty of information free on the JustMoney website. It offers articles, budgeting tools, online calculators, guides and a full range of financial products and services from reputable providers. For advice you can bank on, access the website here.

    Watch this space for updates in the Hacks category on Running Wolf’s Rant.

    Get updates via email
    Covid-19 Home House Useful Tips
    Share. Facebook Twitter Pinterest LinkedIn Telegram WhatsApp Reddit Email
    Previous Article30 Epic Dave Grohl Quotes
    Next Article SonOfOld Releases Dark & Eerie Music video for “Much Better”
    Staff Writer

    Running Wolf's Rant's correspondent who chooses to remain anonymous...

    Related Posts

    3 Strategies To Sell Your House On Your Own

    Sep 8, 20217 Mins Read

    6 Costly mistakes to avoid when buying a home

    Mar 26, 20214 Mins Read

    Tips on how to get divorced without a lawyer

    Dec 4, 20194 Mins Read23 Views

    Things to Know About Financial Settlement After Divorce

    Nov 29, 20194 Mins Read9 Views

    Improve your credit record before buying a car

    Sep 26, 20197 Mins Read12 Views

    Stay Afloat: Negotiate Business Credit Card Debt Settlements

    May 13, 20196 Mins Read6 Views

    Leave A Reply Cancel Reply

    You Might Like

    My Experience at Wacken Open Air 2019

    Aug 28, 201953 Views

    My 2 Cents on Parklife 2015

    May 5, 201516 Views

    Review: Van Coke Kartel & Barbosa Experience @ Aandklas Hatfield

    Jul 22, 201318 Views

    A quick chat with Vimo

    Oct 13, 201638 Views

    Photo Album: Dave Matthews Band in Johannesburg

    Dec 5, 201334 Views
    Subscribe
    Get updates via email
    You Might Also Like

    Top 10 Places to Visit

    Aug 23, 20135 Views

    How to Improve Your Profile as an Influencer

    Dec 23, 2021

    Centrum Guardians: Saving South African Every Day

    Aug 21, 201515 Views

    My 2 Cents on the Gauteng E-Tolling System Tarriffs

    Feb 27, 201218 Views

    10 New Grumpy Cat Memes

    May 28, 201359 Views
    Follow Us
    • Facebook
    • Twitter
    • Instagram
    • YouTube
    About Running Wolf’s Rant
    About Running Wolf's Rant

    Running Wolf's Rant has been covering the South African Music Scene and featuring interesting, funny and engaging content since 2008.

    Feel free to explore the various sections and categories. We hope that you find something howling good while you're exploring. Please share posts that you find interesting with your friends on Social Media. Share buttons are provided.

    Featured Posts

    Foo Fighters: 10 Facts You Might Not Have Known

    Oct 29, 201878 Views

    Calum Scott To Tour South Africa in November 2022

    May 4, 2022118 Views

    Photo Album: Billy Talent Live in Pretoria

    Aug 26, 201326 Views
    Recent Posts

    What are the Best Trails in Australia?

    Jun 29, 20229 Views

    Imagine Dragons Announce 2023 SA Tour Dates

    Jun 29, 20222,965 Views

    Dan Mace discovers incredible musical duo

    Jun 27, 202228 Views
    Facebook Twitter Instagram YouTube RSS
    © 2022 Running Wolf's Rant. Designed by ThemeSphere.

    Type above and press Enter to search. Press Esc to cancel.