The Secret to Buying Repossessed Homes
If you’re looking to purchase a new home but can’t find a property you can afford while searching the houses for sale in your area, you may be over looking the bargains offered by bank repossessed homes.
In recent years Property Prices have increased sharply and rising interest rates are driving up the costs of home ownership, for this reason buyers are having to wait longer to find a home in their preferred areas, which they can afford.
The demand for bank repossessed properties has meanwhile been increasing. A repossessed home offers buyers a cheaper alternative, and you can find quite a few bargains in the property Repo Market.
Here;s what everyone should know about buying a Bank Repossessed Property:
On average Bank Repossessed Properties are sold at a huge discount and since banks are keen to find buyers they’re often prepared to relax their lending criteria, making home loans for Repo houses more accessible.
| Click Here to find out how much you qualify for, and get a quick Home Loan pre-approval. |
When buying a Bank Repossessed house you don’t pay any transfer costs, although you are still liable to pay the attorney’s fees for registering the property in your name.
Another advantage is that Transfer is often much quicker, leaving you more time to do any renovations before you actually move in.
Buying a bank repo has many advantages but there are also many disadvantages, click here to find out how you can secure a Cheap Repo Property and avoid the common snags.
Also make sure you get a Home Loan Pre-approval from PropertyLoans.co.za, before you begin browsing the latest list of Bank Repossessed Properties in South Africa.
Category : Property News &Property Tips &Repossessed Houses
Joanne
Aug 16, 2009
Well i am a first time buyer and have been trying to buy a house from FNB which i was told is one of the 2 best banks to use,and Standerd Bank are the other. Up to date i havent even had one phone call from them in regards of my offers for PIP houses. Most banks welcome home buyers knocking on their doors looking to buy repossessed homes. It seems that FNB dont need bussiness. Is there anyone at standerd bank who i can contact in regards of PIP houses, and a possible purchase?
LIZELDA
Sep 10, 2009
It is untrue that there are no transfer costs. In each and every transfer of property, there are ALWAYS transfer costs. Transfer costs=Attorney Fees.
Ernest
Nov 11, 2009
Hi, I have bought a repo house and its a nightmare, cause I bought the house last year November and I have not been able to go in the house.
Because, the seller can’t evict the occupants even though they have a court oder. The sheriff refuses to go to the township.
Sometimes its not ideal to buy a repo house.
Gino S
Nov 12, 2009
@Ernest Thanks for sharing your experiences. I hope you situation gets better and that you will be able to enjoy the fruits of your property investment.
I would advise that anyone who wishes to buy a repo house, checks that there are no tenants currently living on the property.
The best way to do this is to visit the property yourself, as the bank employees are no always sure about this.
Pieter Du randt
Feb 17, 2010
I have been trying to buy a repo home for 8 months and just before we clinched the deal it seems like a FNB employee got his hands on the home i was going to buy!!!!!!!!!
Gino S
Feb 18, 2010
@Pieter Du randt, thank-you for sharing your comment.
Usually what happens with these repo properties is that once an offer is made and accepted, the bank will reserve the property which should block any other buyers.
As we are not involved in this transaction, the only advice I can give is to submit a complaint directly to FNB.
Thando
Jul 06, 2010
i bought a repossessed house with Nedbank…. i paid deposit and also the attorney’s fee…the bank gave 30 days notice to the people that are living in the house…they do not want to come out of the house,the lady claims that the bank was unfair to her by repossessing the house,she counted a lot of reasons that she is in a divorce process,she said that she explained that to the bank,and also she said that she feels that the bank should have given her a chance to bid for the house…but the problem with me now is that i am paying rent for the place where i stay and also paying for the house….its too much….now i have applied for the court eviction order but i have to pay the lawyer from R15000 to R20000. i phoned the bank and explained to them but they told me that they dont deal with illegal occupants….its really hard…dont know what more to do…
lolo
Nov 05, 2010
Its very sad that as buyers of these houses we have to be victims. We bought our house 5 years ago and same story the tenants dont want to move. amazing enough we have the title deed because ours was bought cash. my question is what more do we need to prove that we are the righfull owners of this house and our lawyers seem to be coluding with the tenants lawyers and chowing our money in the process. we are thiningof using other tectics to remove them since the law can not handle this.
1stTimeBuyer
Apr 19, 2011
they say a “wise man learns from his mistakes but a wiser one learns from other people’s mistake.”
i guess i must not even think about the getting a reposessed house. i would put my self in their shoes.. clearly if the bank wanted to reposses my house i wouldnt want to move either.
personally i dont blame them hence i say living is someones’ home can be risky.
if a sheriff fails what can u do ? its a Rick one has to take.. its bargain vs risk!
Peta
Oct 10, 2011
Just what is the best way to prevent one’s house from being repossessed especially in circumstances where one is not creditworthy? I am about to loose mine and believe you me it’s a nightmare i wouldnt wish for anyone to go through. I applied for debt review but the monthly repayment was just huge enough to swallow my salary, so I eventually defaulted.
Zee
Nov 16, 2011
Peta , just stay in the house and refuse to be evicted like the rest, I think I should stop paying my bond as well. People can stay in repossessed houses for years and no one can evict them.