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
