Option 1 – Pay The Arrears in Full
If you are able to, the quickest and most straight-forward way to stop the repossession process completely is to pay the outstanding arrears in full. If a banking error has caused the arrears and you can prove it was not your fault (for example you switched bank accounts) you should be able to claim bank any late payment charges. By communicating with your lender when and how you will be able to pay you may be able to avoid additional “arrears” charges.
Option 2 – Debt counselling (if you qualify)
If you are unable to pay the arrears in full, have not yet received a Section 129 Notice, you can apply for debt review. Please visit www.helpwithdebt.co.za.
Option 3 – Sell Your House Quick (Buy Another That Costs Less)
This option is often overlooked as most people do not what the additional hassle of moving house. Especially if you have lived in the house for a long time. However, this is a very sensible option, and one which can provide more certainty than most other options.
Selling your house quickly is often the option most often recommended by the legal experts. By selling and paying back the mortgage debt you can avoid a credit blacklist and a repossession registry entry. You will have more control over the price you accept and can minimize (in some cases avoid altogether) the costs associated with selling your property. Our 3 step plan helps you sell quickly.
You should remember if your financial situation worsens and your house is repossessed it will be much harder for you to get another mortgage to buy a house, especially if it was subject to any shortfall. Whereas if you sell your house quickly your mortgage is effectively cleared off and any remaining equity is paid directly to you as a cash lump sum.
Option 4 – Sell Your House and Rent It Back
This maybe a good compromise if you are reluctant to sell your house, but have exhausted all your other options available to stop a repossession. By agreeing a sale price and a rental price in advance with our fully FSA approved sell and rent back scheme you can sell your house and continue to live there for as long as you want at the agreed monthly rental cost.
This can often be less than your mortgage payments. This means you can clear your mortgage and any other debts, and depending on how much equity you have in your property you will receive a cash lump sum to spend as you wish.
You can rent back your house at an agreed price either in the short term whilst you find another house, or long term – it is entirely up to you.