THE EX­PERTS

CityPress - - Opportunity Index -

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.

Tommy Nel

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