Repossessed houses – First National Bank is a giant financial institution. What makes this institution even more unique is its ability to put the interests of clients and meeting market needs first before profits. One of the economic sectors this bank has stamped its authority on is the property financing market. FNB has therefore provided financing avenues for those who wish to acquire properties. One of the results of this open door financing policy is that it’s not always that clients meet the agreed repayments, this therefore results in property repossession.
A property becomes a property in possession (PIP) or bank repossessed property once a customer has defaulted on repayment terms. FNB has therefore come up with a mechanism in which finances can be recovered, these PIP’s are handled in different categories such as quick sell private sale properties, quick sell repossessed properties, quick sell insolvent estate property.
Quick Sell Private Sale Properties -These are properties where clients have appointed the bank to market their properties on their behalf through approved estate agents. FNB under this one offers 100% bonds, buyers receive 50% discount on attorney fees regarding the transfer of the bond and 50% off bond registration fees (provided both transfer and registration is handled by the FNB appointed attorney), all properties are sold as they are, property rates and taxes (including all arrear amounts in this regard) will be paid by the seller.
Quick Sell Repossessed Properties – Under this one, FNB offers buyers 100% bonds, no transfer duty is payable by the purchaser, there is no discount on attorney fees, property rates and taxes (including all arrear amounts in this regard) will be paid by FNB until the date of registration, the purchaser is responsible to obtain an electrical compliance certificate, only the conveyancers on FNB’s panel of conveyancers will be used etc.
Quick Sell Insolvent Estate Property – A property becomes an insolvent estate property where a customer has been sequestrated and the master of the supreme court appoints a liquidator or trustee to manage the estate. Under this arrangement, a 10% deposit is required to be paid into the trust account of the trustee when the purchase price is between R1 to R750000 while 5% deposit is required if the purchase price is higher than R750000, there is no discount on attorney fees, risk, possession and occupation of the property passes to the purchaser on date of confirmation of the sales agreement by the trustee, the sales agreement is subject to approval by the master of the supreme court, guarantees are to be delivered within 30 days of confirmation of the sales agreement by the trustee etc.