Houses repossessed by South African banks are often sold at auctions to allow banks to gain back some of the money that they’ve lost when tenants have not made their repayments. It is a great time for buying property and because the market is quite quiet and many sellers are trying to get things done as quickly as possible. Banks like FNB, Nedbank, Standard Bank, ABSA are all involved in the sale of foreclosed homes at much cheaper rates than they would originally have been sold for. Auctions are a great place to sell homes because of the excitement of the day.
Auctions for houses repossessed by South African banks are really exciting places to purchase homes. Repo homes come in a variety of shapes and sizes, and also in a variety of conditions. Some are foreclosed when they are nearly new and others are only repossessed later into their ownership. In some cases you can buy a home and move straight in and in other cases you will need to do renovations, and you may even need to rebuild a portion of the house. It is best to inspect the property before you purchase it so you have an idea of what you’re in for.
If you are interested in buying a repo home but are not sure if you are in a financially secure position then it is worth talking to your bank about home finance. Banks like FNB, Nedbank, Standard Bank and ABSA do offer some finance and in some instances they do provide bonds. So consult with your financial advisor so that you have an idea of how much you can spend. At most auctions you are required to put down a deposit, so when you have it then you can start looking for houses repossessed by South African banks.