Borrowing

Distressed and repossessed properties

Are you a first time buyer looking for an affordable home? Or maybe you’re an experienced buyer simply looking for a good property deal. Buying a repossessed or distressed property is an option worth looking into.

Distressed vs. repossessed property

If a home loan customer struggles to make their monthly repayments, the bank can help them sell the property to help cut their financial losses and avoid foreclosure. In this case the borrower signs a mandate allowing the bank to sell the property on their behalf. Distressed homes are sold through an estate agent and as such the seller is likely to get a market-related price for the house.

Should the borrower decide not to sell, yet still fails to make the repayments, the bank will eventually repossess the property. Attorneys take legal action and a judgement is obtained from the High Court against the defaulter. The property is attached and the sheriff sells it at a sale in execution. If the bank’s reserve price can’t be achieved at the auction, the property is bought into possession, meaning the bank now owns the property.

Why buy a distressed property?

  • Qualifying buyers are eligible for 100% finance from Absa and 50% discount on bond costs (terms & conditions apply)
  • The seller pays the property rates and taxes until the day the property is registered in your name – including all arrears
  • Once your offer to purchase is accepted, Absa’s Mobile Express agents are ready to help you complete your home loan application
Why buy a repossessed property?

  • When you buy a bank repossessed property in your personal capacity, you don’t pay transfer duties
  • Absa pays the property rates and taxes until the day the property is registered in your name – including all arrears
  • When you finance the property through Absa you get discounted attorney fees
  • Once your offer to purchase is accepted, Absa’s Mobile Express Agents are ready to help you complete your home loan application
When you’re ready to buy

  • Once you’ve searched Absa’s repossessed and distressed properties and found something you’re interested in, contact us to view the property or, if you’re ready, make an offer to purchase
  • We’ll send you written confirmation on the outcome of your offer within seven working days
  • If your offer is accepted, a transferring attorney, nominated by Absa, will proceed with the registration of the property
  • If you need Absa Home Loan finance, you can apply online or call us on 0861 221 221
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