The recessionary environment, which has been aggravated by the Covid-19 pandemic, is putting financial pressure on homeowners, leaving many struggling to keep up with their home loan repayments and contemplating a forced sale.
Echoing this, Buyisile Maseko, growth head at FNB Home Finance, says homeowners must contact their banks or home loan providers as soon as they realise they are unable to make payment on their bonds. “Don’t wait until the banks’ collections and recoveries team or department contacts you,” she says.If homeowners find they are unable to pay the full instalment on their home loan, Lee says they need to contact their home loan provider and inquire as to arrangements that could be made.
Owners who are selling due to financial difficulty should “not leave it too late”, says Lew Geffen Sotheby’s International Realty’s Jill Lloyd. If their property is sold by the bank on auction they might not get a good price and will still be liable for the shortfall.