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Frequent Contributor
Nobody I asked so far can really give me an answer. Let's assume I have a homeloan at a bank and this bank folds completely. All my installments are paid up to date. I have actually paid more than I should and have access to say, R100 000 on this bond. Let's further assume no other institution wants to take over the homeloan book of this bank. Where does this leave me in terms of the property and the R100 000?
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17 REPLIES 17
Super Contributor
Boing cannot see why it is any different to any other liquidation.On the outstanding portion of the loan you would continue paying instalments over the remaining term until the bond is fully settled. You would not be able to get a re-advance on an access type bond as the liquidator will not have cash to give you. You could obviously refinance with another institution and settle your bond in full with the liquidator.
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Super Contributor
Enver Motala will move in. His wife will choose from your furniture, and he will choose from your daughters. I suggest you dress your sons in Elliots overalls, then maybe they can do a runner with some odds and ends.
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Super Contributor
Another Q. I just took a list from SBK on their repossessed properties. They got the Selling price on each on each house. How can u find out what it's owed on the house so u can pay just that??
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Super Contributor
Shew, I'm amazed they don't just publish that info ;)
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Occasional Contributor
The Deeds Office for the area will have details of any bond/s registered over the property (this is public information which anyone may access). However, this will only tell you the amount of the original bond/s and not the current balance outstanding. If you have the time and the energy you could try to locate the actual court file in which the bank has set out details of the case by virtue of which it has taken possession of the property from the bondholder (also a matter of public record). That will contain full details of the amount that is owing on the bond. You would need to know the case number under which judgment was granted in order to find this.
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Super Contributor
If I understand it correctly the bank is not looking to make a profit out of the deal it just wants its money back. Any amount over will go to the original Bond holder. The way to play this is like u described or maybe just bid low and bid ever so higher every week until u meet that price..I don't know.
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Super Contributor
We'll I'll then come in, offer the liquidators R1 like Mr Basson offered OK bazaars, take you R 100 000, put it in my pocket and punt the rest of the book to the worst loan sharks around. Easy
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Frequent Contributor
Ok Kwagga, but then who owns the property. Mr Basson until I pay the rest of the money that I still owe to the loan shark? Also, when it comes to PIP's, is it not required by law that they should be sold on a sheriff's auction?
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Super Contributor
Yes the sherrif attaches the property and sells it on sale of execution. The Bank (primary bond holder) is also a bidder. If they are not happy with the general public bids received (i.e. well below market value/what is owed) they then buy in the property - only then does it become a PIP (property in possession). Can never become a PIP without 1st being on auction.
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Regular Contributor
Get the address. Get the ID number, check the ID on www.blacklist.co.za. This will give you the amount that was owed. With the address you go to the www.deeds.gov.za enter the address and pay R6 and get the whole deal.
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Contributor
Another Q. I paid a deposit on a new property development (cluster home) and the developer has gone bust. The money was paid into a trust account. Who do I get my money back from or is the money gone?
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Contributor
Another Q. I paid a deposit on a new property development (cluster home) and the developer has gone bust. The money was paid into a trust account. Who do I get my money back from or is the money gone?
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Super Contributor
I would think the company would be forclosed by the Sherrif or the banks, it would go to court and someone would decide that you get 10c to a rand. eventually 2 years down the line you will get paid out
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Contributor
Does that mean the Selling Price for the PIP from the bank's list, is not the outstanding amount of the bond? So the bank is trying to make a profit from selling PIP. Which is cheaper buying PIP properties or buying properties at the auctions?
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Frequent Contributor
banks send their agents to auctions to prevent a property selling out for too low. they actually take over the property as owners with the hope of recovering more. problem is that they then also have to cover on-going costs incl rates & taxes, upkeep, security against vandalism etc etc.
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Super Contributor
Just do a Windeed search. It tells you purchase price and bonds registered.
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Super Contributor
It has happened as you say - there was a big hoo ha in the papers some time ago. Not sure what the current practice is, though technically it is fair as the Bank was just another bidder at a public auction - so what should prevent them from profiting from the proceeds above outstanding balance? The benefit of buying a pip is that you can arrange finance the conventional way. with auctions you have to have finance available/cash (mostly). So, if you are sitting on a pile of cash (millions) you should do better at an auction.
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