|
In these tough times one of the most frequent questions is what do I do if I am over exposed and can’t pay the bond/s.
Here are some practical solutions out there that others have employed:
1. If you can’t pay the bond but the transfer has not take place
yet, in other words you have bought into a development, please read
this article: Property Transfer Nearing No Money to Pay the Bond
2. If you have too many properties and the bonds are "killing your financial position consider selling some urgently.
3. If you can’t sell at the price you want consider reducing your price to sell at bare absolute minimum.
4. If you bought to high consider selling below price and just
remain in debt to the bank with a little amount of money (better in
debt with for example 100,000 or 200,000 than repossessed or bankrupt, anyone can clear that amount of debt in a year or two or even three
than have a bankruptcy on your head).
5. If you foresee only a temporary set back, please read this
article: What to Do When you Cant Pay the Mortgage Bond , it explains the entire process of banks helping people that
are over indebted. The article also explains the process before the
bank will reposes your property.
6. Bridging finance - there are companies that will give you bridging finance but
this will cost you an arm and a leg more often than not. This is an option nonetheless if
you foresee this to be a temporary situation. But do take into
consideration that you will have to provide some sort of security,
these companies usually look at the property equity to consolidate debt and
this also means that you must have some equity in the property. It is a complicated thing; get professional help if you get involved in such
ventures you may lose your property through something like this anyway
if you are not careful what you are doing. But if you know what you are
doing and have a solid plan behind your recovery even the bank may help
you (not only debt consolidation companies).
7. The next question asked is how about re-financing to get
temporary help with debt. Again, whatever you do get professional
advice. But generally speaking if you are already in debt the bank
won’t give you more debt to take upon yourself because that would be
considered reckless lending. After the NCA banks try their best not to
get people over indebted because they will be on the loosing end.
That said you may be able to work out with the bank a better situation.
Turn to them because they have opened centers for their indebted
customers. This means they want to help rather than lose more money.
Don’t think that they are doing you a great favor because they are not;
they are helping themselves to ensure they don’t lose the money they
lent you in the first place.
The options in this blog post are something things that have been
employed by other people in the market. This is not financial advice and please what ever
you do, get professional help if you are over indebted and above all
speak to your bank before the proverbial *sht* hits the fan, you get more
chances to come out smiling after these difficult economic times if you act promptly and in the right time.
|
