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Who owns your house

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CrownA
Super Contributor
If you have a bond, and the bank you have the bond with goes bust, then who owns your house? Do you still have to keep on paying, or can you cancel your debit order? Do you get your house for free, or maybe at 30c/R1, 1c/R1, etc??
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8 REPLIES 8
platsak
Super Contributor
Unfortunately not. The rights and obligatitions goes over to the to the Master of the High Court apointed Liquidator which due to the fact that he earns fees on all amounts will be very keen to make sure that you pay your debts. The Banks unsecured creditors however will stand in que to get their money. Useally the book is then sold over to another fin institution which aquires the rights and obligation through cessions and delagations.
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platsak
Super Contributor
In short whomever holds title to your Bond owns your house.
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platsak
Super Contributor
An Banks going bust?
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Brazen
Super Contributor
When banks go bust they sell off any assests, and the mortgage book is usually one of those assets. So you'll just pay the new guys.
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Not applicable
When Saambou went belly-up back in 2002, FNB bought their home-loan book.
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Blik
Super Contributor
In Grahamstown, Ants own the houses - the rest of us are just mildly tolerated tenants.
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Not applicable
And, if nobody wants to buy the "bust" bank???
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Not applicable
That's the beauty of a liquidation - one can buy assets (e.g. the home-loan book) without all the liabilities that the bankrupt company had.
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