I went under debt review in October 2015. However, due to various factors ( including me losing my job earlier this year (UIF claims already finished) and the DC not being completely transparent about the entire process -stuff they don’t tell you in the ‘fine print’), the whole process has turned into a living hell. As a result I am in consultation with estate agents to have my house put up for sale.
My questions are as follows:
- Once I have signed a mandate with an estate agent and the ‘for sale’ sign goes up, would it still be possible for the bank to repossess if the debt review payments are not met, but I have written proof that the house is on the market.
- Also, I want to use proceeds from the house sale to settle my car. Without a car I cannot attend job interviews etc. – so that for me is my ‘life or death’ focus right now.
- Can I pay the vehicle instalments (which are way less than the monthly debt review amount) directly to the finance house while under debt review?
Having said all of the above, my family and I are tying ourselves in knots to ensure the debt review payments are met timeously while the house is for sale – we are not that irresponsible to ignore legal processes etc. I’m trying to inform myself of the consequences should my situation deteriorate even further.
Hi there and thank you for the question.
A Mandate with the estate agent does not exclude the property from being attached. The bank would be able to proceed with the attachment if they choose to do so. However, in order for them to do so they would need a court order. For them to obtain a court order they would need to issue a summons which will offer you the opportunity to explain to the court that the property is in the market and there is no need for the bank to take it back. It is important that you open all your mail to ensure that you do not miss a summons…. If one is issued at all.
On the other hand, from our experience the banks would be lenient if you can prove to them that the property is in the market and that you are making an effort to get it sold. They are able to grant you time in order to get the property sold. Ask them for at least 6 months, and keep them updated on all happenings with regards to the selling of the house. If you get an offer to purchase share it with them and keep them in the loop.
As far as settling your vehicle finance with the proceeds of selling the house. It depends on what you still owe the bank. If you owe the bank R1mil and sell the house for R1mil then you won’t have any surplus. If you sell the house for R1.5mil then you are free to do with the surplus what you want. It is your money.
Hope this answers your question and please feel free to email should you need more info. Our email address is [email protected]