What is a judgement in terms of mortgage default? Judgement, or judgement debt, is a court order to pay money owed. When you default on your mortgage payments for instance, the bank can go to court and get a judgement against you. If this judgement remains unpaid after a few years it will turn into a default judgement.
So what happens if I have judgement against me? You should know that having judgement against you can lead to some very serious consequences including:
– getting fired from your job
– losing the ability to borrow money in future
– having assets seized by creditors
– judgement enforcement proceedings against you
– judgement enforcement proceedings against your spouse or children if they are co-owners of the property with you.
Can judgement debt be removed from my credit report?
Judgement is a very serious thing, and it will stay on your credit record for at least a few years after which time it can only be removed by either having judgement set aside or judgement debt paid in full. If judgement is not removed, it can affect your ability to borrow money for up to seven years after the judgement was registered against you.
If you have a property or real estate as an asset and just need some time and help to pay back your mortgage bond, contact Real Estate Assist, We have many Solutions to pay off mortgage debt and facilitate the process to avoid further debt.
If you are in South Africa and default on your mortgage payments, judgement may be awarded against you. A judgement is the legal process of awarding a creditor with an amount owed to them by a debtor. It can be granted if the debtor fails to pay their debt after being notified that judgement will be taken out. Judgments are effective only within the borders of South Africa, so it is important that judgement not be granted outside of this country or else it will have no effect.
You’ve probably seen judgement advertisements around town. They look like this: “judgement for default in payment of debt secured by mortgage”, or “default judgement for _________ not paying debt owed to ___________.” Defaulting on a contract is serious business and can have lasting consequences that could affect your credit rating, o it pays to know the ins-and-outs before you do it!
At Real Estate Assist we understand how difficult this time might be for you; our staff of experts are all well-versed with the ways judgement debt may be removed from a borrower’s or co-borrower’s credit report – contact us today at @ www.realestateassist.co.za for a Free Debt Consultation #nodebtcounseling needed! We also offer solutions that can help you pay your mortgage bond and we facilitate the whole process for you to avoid further debt and finally break free from debt and debt review.
Are you in South Africa and defaulting on your mortgage payments? The judgement will be awarded against you if the bank takes it to court, which means that judgement becomes a final order; however there are several options still open for you: you can pay off all of your bond or part thereof by instalments, negotiate the amount owed with the creditor (bank) or request judgement cancellation. Real Estate Assist can take care of all of this for you so you don’t need to worry about a thing.
Judgement cancellations allow borrowers who have been uncooperative during their judgements proceedings to activate again at any time within seven years after judgement was registered. This is one way people get rid of judgement debts without paying them!
If judgement has already been executed against you i.e., money collected from your bank account, you can apply for judgement cancellation or set-aside. If judgement is not removed, it will affect your ability to borrow money in future if the judgement remains on your credit record; however there are many solutions available at Real Estate Assist – contact us today!
We understand how difficult this time might be for you and our staff of experts are well versed with all ways judgement debt may be removed from a borrowers’ credit report – contact us today at @ RealEstateAssist.co.za! We also offer solutions that can help pay mortgage bond and facilitate the process to avoid further debt by applying for judgement cancellations without paying off debts owed.
A judgement mortgage is defined as a mortgage in which judgement has been granted in favor of the plaintiff. The judgement must be obtained before any writ of execution may issue against the mortgagor’s property.
The transfer of judgement mortgages under South African law is governed by section 25 of the Deeds Registries Act 47 of 1937. A judgement mortgage may be registered at any registrar’s office where deeds are registered. The registration must be made by deed, or by an instrument in writing, executed either before two witnesses or before a magistrate or notary public if the transferor does not reside within the Republic, and verified at the registrar’s office when it is offered for registration. Registration must follow when the transferor produces the judgement, the original judgement mortgage deed and executes an affidavit or affirmation before a magistrate or notary public stating that no change has taken place in the conditions of the judgement.
Once registered at the deeds office, transfer is complete against third parties even if there are other mortgages on title to it; however, notice must be given to all holders. The transferee enjoys priority over any subsequent judgement mortgagees who register their interest later than him/her. If two judgment mortgagees claim superior rights by reason of registration first but both registrations were made after defaulting judgment mortgagor had possession (and still occupies) the property then they will be deemed co-owners with equal shares unless one can prove his purchase price exclusively from funds sourced out of the judgement.
The judgement mortgage deed must be registered within six months of its date, failing which it may be set aside by the registrar on application to him/her; if he is satisfied that the registration was not completed in time for good reason, or has been omitted through inadvertence, mistake or accident without any fraudulent intent on the part of the mortgagor (mortgager). If no transfer is effected within three years after defaulting judgement mortgagor’s possession terminated then s/he will lose all rights under his/her judgement and execution will issue against them personally. However, where a new owner occupies but does not register their interest before an earlier-registered judgment mortgagee theirs during this period then they will be deemed co-owners with equal shares.
The judgement mortgage deed must contain the following:
”JUDGEMENT MORTGAGE DEED FORM – SOUTH AFRICA”
Transfer of judgement mortgages is a fairly straightforward, uncomplicated process. All judgement mortgage holders must do is apply to the court for a judgement mortgage order and submit this along with a judgement notice to the judgement mortgage holder. The judgement mortgage holder then sends the judgement notice to the judgement debtor who must then pay off the judgement after being notified that judgement will be taken out.
When judgement has been taken out it is then transferred to the judgement mortgage holder. Once judgement has been taken out on the judgment debtor, they are then liable for all charges and interest which accrue. It is at this point that judgement mortgage holders can apply to judgement debtors bank account in order to recover their funds. This process will be successful if a default judgement mortgage was applied for when judgement had already been taken by the court against the judgement debtor.
This judgement mortgage transfer is complete when the judgement mortgagor signs the judgement mortgage deed in front of two witnesses or before a magistrate, notary public if they do not reside in South Africa.
The process must be completed within six months after default judgement is granted by court otherwise it can be set aside at any time by the judgement mortgagee. Other types of judgement mortgages can be set aside by applying to court if registered more than six months after default judgement was granted but only with good reason or inadvertence, mistake or accident without any fraudulent intent on behalf of judgement debtor (judgement mortgagor).
Judges often consider a number of factors when determining whether judgement mortgagee was entitled to judgement or not, including:
– Whether the judgement debtor had a defence at trial.
– Whether judgement owed is reasonable and justifiable.
– If default judgement for claim of R500 000 against a judgment debtors monthly salary of only R10000 would be considered unfair by court?
In some circumstances where judgement mortgagee was not entitled to judgement, the judgement mortgagor may be able to recover their money from judgement mortgage company.
Judgement mortgages are usually registered at the deeds office and can take between four and six weeks to complete due diligence process which includes an application for search, verification of title deed records as well as identity checks on both judgement debtor and judgement mortgagee.
At Real Estate Assist, we understand that many people struggle with the process of judgement transfers in South Africa. We can help you with judgement mortgagee transfer processes in your area.
We will register judgement mortgagee deeds with the judgement debtor’s bank account in order to recover their funds in four to six weeks after judgement has been taken.
With judgement mortgagee transfer you do not need to worry about costs. We will ensure that all judgement processes are complete and on your behalf we provide judgement transfers at an affordable rate.
Please contact us today if you would like assistance with judgement mortgages in South Africa, Our Legal conveyancers and Property lawyers can help you stop legal action and stop the auction and help you recover financially in South Africa!
Your Debt Free Journey Starts Here, We provide Legal real estate assistance and property legal advice with trained property and law experts in South Africa and we are based in Cape Town.
