Homeowners Urged to Hang Onto Homes Despite Recession - 01-01-09

January 1 - The latest statistics to come out of the South African property market is that a record number of homes have been repossessed as a result of the inability of struggling homeowners to keep up with their home loan repayments. However, despite these dismal reports, South African homeowners are encouraged to keep their mind focused on one goal - to hang on to their homes in whichever way possible, as this property remains their most valuable possession in the long run.

"Frightening statistics unveiled recently show that around 2000 homes are being repossessed every month and nearly 100,000 homeowners have defaulted one their bonds, with a quarter of them in danger of losing their properties," said the Chief Executive Officer of Bond Choice, Mark Beckett.

One of the best ways for South African homeowners to treat this problem is by admitting that they have one. Beckett urges homeowners to take a long, hard look at their lifestyle before succumbing to repossession and says that in many cases it is simply a matter of selling luxury vehicles and settling for less until the tough economic period that we find ourselves in runs its course.

Banks and home loan businesses may not initially convey the message that they are willing to help get struggling homeowners out of their tough situations, but they are certainly there to assist as it is in their own best interests in the long run that homeowners stay in possession of their homes. "Consider the relationship with the bank as a partnership, not the Cold War," said Beckett.

Banks will be able to work out all sorts of solutions for homeowners, ranging from extending the loan from 20 to 30 years, to recalculating repayments. Overall, every effort should be made to keep up those repayments.