Dlamini wants to know if banks provide financing for houses purchased through a sheriff’s auction. “Should I apply before or after the auction for financing? If they approve my application, how much will the bank loan to me?”
We asked FNB’s Tommy Nel, who is the head of credit, and Calvin Ndlovu, the chief operating officer of home loans, to provide advice about the general rules of buying a property at a sale in execution – a public auction held by a sheriff of the court.
When this happens, a court order has been obtained by the bank to attach and sell a property to recover the money that has not been repaid on a home loan. It is vital to take out insurance once you have bought a property.
This can be done through your bank or another financial institution. What does it cover? Fire, lightning and explosions. Impact by animals, vehicles, falling trees or parts of trees; aircraft or articles dropped from above.
Loss or damage caused by faulty water systems, including burst, leaking or overflowing geysers, water supply tanks, cisterns and water pipes.
Loss or damage caused by deliberate or wilful acts.
Erosion or subsidence. Natural disasters, including storm, wind, flood, hail, snow or earthquake damage.
Theft or attempted theft, where forcible and violent entry to (or exit from) your property causes damage to the premises.
Breakage or collapse of fixed radio or television aerials, satellite dishes or masts.