Gauteng repossessed houses up for sale are a great place to look if you do not have a large amount of money to spend and want to find a home that will suit your requirements. Instead of having to look for properties that are outside of the areas in which you would like to live because the property prices are too high, why not look out for repossessed houses in those areas.
You can find properties that are being sold for well below market value due to the fact that these houses or apartments have been repossessed by the banks. This has occurred because the previous owners of the property have fallen back on their bond repayments. Although it might seem a little callous to purchase someone’s home that they did not want to leave, it does present a great opportunity for you to find the perfect home, in the perfect area, without having to spend a fortune.
If you are looking for Gauteng repossessed houses up for sale, then there are three phases during which one of these properties can be purchased: Distressed sale, Sale in Execution, and Properties in Possession. However, in order to fully understand what each of the above phases mean, you need to be able to understand how property repossession works.
Firstly, repossession can only occur if an individual known to the banks as a borrower (meaning that they have taken out a home loan with the bank), has defaulted on their repayments of the loan (or bond) to the extent where the only way to recover the money owing, is to repossess the property. From here, the banks have to get their attorney’s to apply for a judgement against the borrower in the local magistrates court. Should the borrower not be able to pay back the money owing by the time that this occurs, then the magistrate will allow the bank to seize the home owners moveable assets (i.e. their car, their appliances etc) in order to get the money back.
Should the sale of the borrowers moveable assets not amount to enough money to cover what is owing to the banks then the property will be auctioned in what is known as a Sale in Execution. However, should the owner of the property try to sell the property themselves in order to make back the money owing, then this is considered to be what is know as a Distressed Sale. Should the borrower or the bank not be able to meet the reserve price set on the property, then the bank can buy back the property and it is then referred to as a Property in Possession or a repossessed property.
Unfortunately due to the economic recession, more and more houses are becoming properties of the banks once again. This means that you can find a list of Absa, Nedbank, Standard Bank, Wesbank properties that have been repossessed almost anywhere. Many of the weekend newspapers that have property sections list the homes that have been repossessed and put up for auction. You may be wondering what the other benefits are of purchasing a repossessed home, other than reduce prices. Well, in most cases you do not have to pay a transfer fee. This will save you a lot of money as this is normally one of the priciest things when purchasing a home.
The chances that finance will be approved by the banks in order to purchase one of these properties is higher than if you were looking to purchase normal house for sale. This is because the banks need to make back the money owing to them and quickly. Lastly, should the house be in a state of disrepair, then you can often negotiate the price. This can therefore be a property developers dream.