Revealed: What you should know about buying distressed residential properties

When an individual can no longer pay off their mortgage due to unforeseen circumstances such as for example job loss due to covid, they have the option of reaching out to their bank and voluntarily resolving their bond by way of a bank-mandated property sale.

If the current bondholder finds a buyer who offers to purchase the property and buy the current bondholder out of their mortgage, the current bondholder would then communicate this to the bank and facilitate a property transfer of ownership in which the buyer would then be responsible for settling the previous owners bond debt with the bank and thereafter, the new property owner will be responsible for settling any outstanding rates and taxes.

Interested in finding out more on how to buy distressed properties? Read Here

The Online Auctions Team

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