Compiled by Allison Jeftha
A Fin24 reader underneath debt assessment needs to promote his R1.5-million property, settle his debt, and put down a deposit for a brand new home, however no financial institution needs to contemplate his software.
I’ve a house mortgage with Financial institution X. I at the moment have an impressive steadiness on my house mortgage of R360 000. Attributable to monetary problem, I’ve utilized for debt assessment independently. My credit score rating in the intervening time is 650.
I need to promote the property I at the moment personal, valued at R1.5 million, repay all my debt, and put down a deposit of no less than R300 000 for a brand new home. Nonetheless, not one of the banks I’ve approached won’t even contemplate my new mortgage software till I settle. I’ll settle as quickly as I promote my home, however I can’t even get pre-approval for a mortgage.
I’ve a steady earnings and might afford a spot of R2 million. This would be the second property I purchase.
Neil Roets, founder and CEO of Debt Rescue, responds:
For a client to exit debt assessment, and to have the ability to apply for brand spanking new credit score, all current short-term debt (this contains autos, however excludes house loans) must be paid in full, and residential loans have to be updated. On this particular case, the property will be offered, and any funds remaining after settling the bond will be utilized to settle all of the short-term debt. As soon as all of the short-term debt is settled, a clearance certificates might be issued and the patron will now not be underneath debt assessment. The patron will then be capable of apply for brand spanking new credit score. New credit score being granted after the clearance certificates is issued, might be primarily based on numerous elements, together with (however not restricted to) affordability and credit score rating.
Any new software for credit score, together with a pre-approved mortgage, will solely be potential as soon as the clearance certificates has been issued.
Questions could also be edited for brevity and readability.
Disclaimer: Fin24 can’t be held responsible for any funding choices made primarily based on the recommendation given by unbiased monetary service suppliers. Underneath the ECT Act and to the fullest extent potential underneath the relevant legislation, Fin24 disclaims all duty or legal responsibility for any damages by any means ensuing from using this web site in any method.
For extra data, learn the complete article right here: https://bit.ly/3LekmSg