Don’t be a Steve when paying off your home

FNB offers a range of solutions to help customers get out of a distressed situation. (Photo: Shutterstock)
FNB offers a range of solutions to help customers get out of a distressed situation. (Photo: Shutterstock)
Cape Town – Whether you’ve paid your home loan early, or are battling  to pay your home loan due to issues with debt, banks have internal systems that need to be followed in order for customers to get the best from the situation.

Calvin Ndlovu, head of collections at FNB Home Loans, said people usually pay their home loan account before the maturity of the term of the loan. “They expect that the bond will be cancelled,” he told Fin24.

However, customers should advise the bank when they are about to pay off their home loan account, so they can start a process of cancelling the bond with the deeds office, resulting in a payment fee on behalf of the customer.

Watch the full interview here:

Distress options

If customers fall into distress when paying a home loan account, they can contact their bank, which would have a process to manage the situation.  “The bank will then do a full assessment on the customer and then offer a range of arrangements,” he said.

FNB offers a range of solutions to help customers get out of a distressed situation.

Legal action is their last port of call, but if customers in arrears for three months do not make contact with the bank, then they would have their property auctioned off, a process that takes up to 12 months.

Watch the full interview here:

Quick sell

FNB’s Quick Sell option helps customers repay shortfalls on their properties that are auctioned off, as the bank subsidises up to 25% of the total balance owing.

“It’s absolutely crucial that you come to the bank and we will look at the market value, we will help with the estate agent in your area and we will tell you exactly how much your property should be sold for.”

The bank and client would then agree on the mandated price of the property and short fall. “You will have the comfort of knowing what needs to happen next,” he said.

Watch the full interview here:

- Fin24.

Have you found ways to bring value to your property? Or just have something on your mind about property? Add your voice to our Property Issue:

* Write a
* Share a personal story
* Ask the experts

Brent Crude
All Share
Top 40
Financial 15
Industrial 25
Resource 10
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
I'm not really directly affected
18% - 2177 votes
I am taking a hit, but should be able to recover in the next year
23% - 2782 votes
My finances have been devastated
35% - 4215 votes
It's still too early to know what the full effect will be
25% - 3020 votes