Monday 9 May 2016

Myths about repossession



Myths about repossession
1. Can I apply for debt review to prevent repossession?
Debt review can only be used as a legal remedy to
prevent repossession if there is no legal action on that
specific account. If you have indeed received any
formal legal documentation debt review (debt counselling)
will never preventrepossession. You can verify
this by downloading a free copy of the National Credit
Act (NCA) from our website


2. Can I bring a court application to
prevent repossession?
Absolutely! But we can absolutely without
any doubt confirm that no evidence
presented in a court application will result
in a decision in your favour. Plain
and straight forward based on the fact that you have
not complied with the terms and conditions of your loan
agreement, and therefore the credit provider can use
remedies (such as repossession) to rectify

3. Can I apply for a loan and/or do we offer loans?
We do not offer loans either to prevent repossession or
so called “consolidation loans”
Any company that even consider to give you a loan is
in direct violation of the provisions of the NCA. You
cannot be pre qualified for a loan in terms of the Act if
you have a tainted credit profile. Without us even
having to look at your credit profile we know that you
will not qualify. This is not a prejudice judgement but a
known fact as a result of the given that your property
will be repossessed!

4. Can I make alternative arrangements with the credit
provider?
You are more than welcome but with reference to the
court application question this will not work. The legal
process that have been started must in terms of the
Court rules be completed.
Some statements we have heard over the years
that are complete myths!

1. My house will sell for the debt amount so why worry?
This is so far from the truth and if it was the case we
would advise everyone to let the legal process run its
course. The norm is that the banks can only repossess
(buy their own property on the auction) for an amount
not exceeding 65% of the capital outstanding. The
shortfall of that execution sale will be for your account
and will change from a home loan format to personal
loan formatted loan with interest rates of up to 33% pm.

2. I cannot afford to lose my house!
This might be an emotional expression that is fact but
you have to force yourself to disallow emotion to influence
your decision. At this moment you cannot afford
to keep your house as well! Should you run the risk of
having a shortfall you will never be in any position to
qualify for any credit for the rest of your life. Repossession
and execution orders that is not settled stay on
credit listing for 30 years! This listing also
has the implication that you will be penalized
when renting property. We also think
it is unfair to pay off a debt (shortfall) for
something that you do not own or have
the benefit of enjoyment thereof.
Please contact us today on 073 053 7756 or visit www.preventing-repossession.co.za


What is repossession?






What is repossession?

Property repossession in South Africa is the completion of the legal process to recover debt owed to a creditor (like the banks) that is secured by immovable assets (your house). This credit agreement is usually called a bond.
The final step to complete the legal process is for the property to be sold on auction at the Sheriffs office. This concludes the legal action as far as repossession is concerned. Only when the sale has been concluded is the property considered to be repossessed.
Please see "What happens after repossession" to read about the follow up legal action that can take place after the sale
We aim to provide you with the right information before this sale happens to make sure you understand the effects of repossession.

Please contact us today for a free consultation and advice on how to stop repossession and how we can help you prevent repossession

Sunday 8 May 2016