Selling My Property: How To Access The Funds Now
Unfortunately, selling a home takes time and even though a buyer has signed on the dotted line, it’s usually months before a property is transferred and the much-needed funds are transferred into the seller’s account. This can be problematic, especially for those who need to use any profit made to settle short-term debt. There is a way to gain quick access to funds from property sale.
Everyone knows that buying a home is probably going to be the biggest investment the average person will ever make. In an ideal world, owning a property would give you a certain amount of financial freedom – basically because property is an asset and will generally turn a profit when sold. However, there are instances where a homeowner can no longer afford the bond payments and needs to sell in order to save himself from drowning in debt.
Unfortunately, selling a home takes time and even though a buyer has signed on the dotted line, it’s usually months before a property is transferred and the much-needed funds are transferred into the seller’s account. This can be problematic, especially for those who need to use any profit made to settle short-term debt.
The fact that South Africa has been downgraded to junk status is going to make things a little trickier for those who want to secure credit. For starters interest rates are almost certainly going to rise and with that will come the inevitable clamp down by banks and other credit providers which will become far more particular about to whom they lend money. At this stage it’s vital to keep your slate clean by ensuring your credit rating remains solidly in the black. This is relatively easy for those who haven’t fallen on hard times, but can be catastrophic for those who are robbing Peter to pay Paul in an effort to stay financially afloat.
Those who sell their homes often get lulled into a false sense of security because they are aware their financial difficulties will soon be a thing of the past. However just because they are told a cash injection is in the pipeline, doesn’t necessarily mean the seller’s creditors will be appeased. It needs to be remembered that even those who are willing to wait for their money will continue to add interest and other charges to the sum owed. It also won’t always stop the credit provider from black listing a defaulting client.
“Many sellers are unaware that they can access up to 75 percent of the nett proceeds of the sale of their property through bridging finance,” says Christo Jonker, sales and marketing manager Prevance.
”Although the amount of the advance granted will obviously vary from transaction to transaction and will exclude the amount still owed on the existing bond as well as other expenses, the fact that cold hard cash could be made available within 24 hours of the application will undoubtedly help those who need to settle outstanding accounts urgently.
“We understand the importance of owning property as well as the importance of using the proceeds from a sale to reinvest in a new property,” says Jonker. “However, we also recognise the need for homeowners not to bankrupt themselves in the process. Bridging finance is the ideal model for those who have sold their homes and who are in need of urgent financial assistance. The money is not necessarily dependant on the seller having a clean credit record and although a credit assessment will be undertaken before an advance is granted, this doesn’t mean that someone with an unfavourable credit report will be prohibited from receiving money.”