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Making payments on a bond

By admin
24 October 2013

If a payment on your bond is missed, does a bank serve some form of reminder or notice?

The bank will send statements to the homeowner that will clearly indicate the arrears. They will also generally send numerous letters to the client to advise them that the account is in arrears. The bank is required by law to have the sheriff of the court serve a summons on the defendant, in this case the homeowner. The defendant is further advised of every step of the process. It is highly unlikely that the client will not be aware that the bond is in arrears or that legal action has started. The Court will not have granted judgment in favour of the bank unless it was satisfied that the bank sent a summons to the defendant.

If you are struggling to pay your bond, is it advisable to let your bank know? How can this help?

One should always inform the bank if one cannot pay the required instalments. The bank can possibly reach an agreement to pay the arrears. The contract one has signed with the bank is, however, the most important consideration. The bank is entitled to claim for all costs, such as interest. Just because one cannot pay the loan due to loss of employment does not mean that you do not have to pay the loan or that the bank cannot claim all amounts due in terms of the contract.