Don't let your home go to auction

Private Property South Africa
Press

Recently, RE/MAX agents prevented two different homes from being sold at public auction by stepping in and offering their assistance to homeowners.

“Many homeowners remain unaware of the benefits of admitting to their financial institutions that they are unable to afford the repayments on their home loan. By working with their banks instead of fighting against them, homeowners can recoup their losses and save themselves the stress of having their home go up for public auction,” explains Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.

Read more: Don't use your home loan like an ATM

Ashley Maharaj of RE/MAX One explains how he recently helped a family whose home was listed for public auction. “I found the homeowner on the public auction list and reached out to present them with the alternative of listing their home through me on Standard Bank’s EasySell programme. Instead of having to go through the stress of having their home auctioned, their home is now listed with me, providing them with more time to sell their home at a price that is acceptable to both the seller and the bank, with a discount offered on the outstanding balance if there is a shortfall,” Maharaj explains.

All banks offer distressed property sale programmes. These are voluntary programmes that have been developed to assist homeowners in acquiring as close to full market value as possible when selling their property in order to cover their debt. In the event of a shortfall, all the banks offer a generous discount (which varies from bank to bank) for homeowners who agree to list their homes on the programmes. The resultant shortfall can be repaid interest free over a period of five to ten years depending on the bank and what the outstanding balance is.

Wayne Manley of RE/MAX Independent also recently helped secure a sale on a property that was about to be auctioned. “Previously listed on the Easysell program with another agent whose mandate had expired, I approached the family and subsequently managed to get a signed offer on this property the day before the auction was scheduled to go ahead. I’ve subsequently sold the property to a second interested buyer,” explains Manley.

See more: How to renegotiate your bond interest rate with your bank

“This is why it is so important to work through an agent who has been specifically trained in this field. RE/MAX offers specialised training to make sure our agents are equipped to handle these transactions, but not all real estate professionals have the training or experience to seal the deal on these sales. If you work through a RE/MAX Certified Distressed Property Agent (CDPA), you have the best chance of making sure your home never ends up on public auction,” Goslett concludes.

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