What are Bank Assisted Sale Property Programs?
Assisted Sale Bank properties come about as the result of the seller requesting the bank to assist them with the sale of their property.
There are 3 distinct stages or situations where property buyers are able to purchase these distressed properties:
The Seller can approach the bank to go onto the “Bank Assisted Sale program”. The property seller then gives the bank a mandate to sell the property, and said mandate is then allocated to Chas Everitt to assist to sell the property. Any sale is subject to the discretionary approval of the seller’s mortgagee.
Where bank clients have been declared insolvent, sometimes these insolvent properties are also allocated to Chas Everitt to market. These sales are subject to the approval of both the trustee of the insolvent estate as also the Master of the High Court.
Should the repossessed bank property not receive the minimum reserve price at the SIE auction, then the bank will buy the property back (the property now becomes a “Property in Possession”,
The best way to understand the difference between the three types of property purchases is to understand the process.
Prior to the introduction of these Bank Assisted Property Sale programs, many South African properties were sold at a Sheriff’s auction, where often very poor prices were achieved, leaving the repossessed property seller with a large shortfall on their outstanding bond.
Now, when a borrower defaults on the home loan, to the extent that the only alternative for recovering the debt is via sale of the bank repo property, the banks, (and Chas Everitt through its own property “LifeSaver” program) offer the property seller the opportunity to elect to enter the Bank Assisted or Distressed Sale program, where in many cases superior results are achieved.