Keep Your Home.
Stop foreclosure, legal action, and Sale in Execution
Sale in execution has never been the ideal solution to liquidate an asset to recover the debt and protect the proceeds and investment made in your property. We can provide real estate assistance through advice, guidance, collaboration, and cooperation with creditors and industry professionals can provide solutions to address your challenge. The earlier we work with you in this process, the less costly it will be. We’ll Help Homeowners to Improve Property and rebuild their credit. View a case study of this type of assistance.
To qualify for this assistance, you must own property, and to keep your property you need a consistent stable income.
a Typical Example
Here is how the real estate assist team can help homeowners.
The examples we illustrate here are real case studies of how Real Estate Assist helped distressed real estate owners.
Homeowner's status in 2019
R 1 650 000
Real Estate Market Value
- Current Bond R 510 000
- Maintenance R 79 000
- Arear Rates & Taxes R 59 000
- Short term debt R 550 000
- Monthly Expenses R87 000 pm
- Monthly Net Income is R 56 800 pm
- Net Shortfall R 30 200
Homeowner's status 2021
R 1 915 000
Market Value (5% p.a. + maintenance)
- Investors purchase @ R 1 100 000
- Mortgage Increased Bond R 1 280 000
- Settle all short-term unsecured debt
- Increase Credit Score
- Monthly Expenses R 12 000 pm
- Monthly Income R 56 800 pm (no increase)
- Real Estate Improved – better security
- Net Income R 17 900
R 531 000 - Net Equity
> Net income -R30 200
- Standing to lose their Property,
- Proceeds and breakdown of family structure and social fabric
- Selling under duress
R 635 000 - Net Equity
> Net income +R 17 900
- INVESTOR ROI = 18%
- Real Estate Owner able to recover, keep their home, family and social structure in place
Case Study
Frangipani Street, Brackenfell, South Africa
The owner recently got divorced and their previous employment contract was canceled. They had arrears on a mortgage bond, short-term debts, and school fees. They had a bond LTV of 40% on higher-value property that required only cosmetic renovations. The owner secured a temporary employment contract but was still unable to settle their arrears. Sale in execution procedures was then instituted by the mortgage bondholder. They required access to equity in their property as soon as possible to provide a stable environment for their children.
Assist Group’s Intervention and Solution
- Sell the property to the investor at less than market value to stop the sale in execution
- Provide rental agreement and perpetual option linked to a lease to the previous owner
- Utilize proceeds for settlement of debts after transfer and cosmetic renovations
- Should option linked to a lease not be exercised then the property is sold to a third party
- Sale in Execution procedures stopped. Pay predetermined profit to the investor as contractually agreed
- The remainder of proceeds payable to the property owner on transfer to third party purchaser
Results
- Sale in execution averted after-sale to investor
- Debts settled from proceeds after transfer to the investor and school fees paid
- Temporary employment contract not renewed to enable exercise of the option
- Rental agreement and option fees paid for 21 months provided a stable environment for children after divorce
- Property sold to the third party with listing after maintenance to maximize proceeds
- Pre-determined profit paid to investor and remainder of proceeds to the property owner
Value Created
- Current Market Value: R 2,300,000
- Auction Value @ 60% R 1,280,000
- Actual Sales Value R 2,800,000
- Equity value saved for owner. R 1,420,000
Costs
- Transaction Costs: R 281,965
- Renovation Costs: R 13,563
- Investor Profit: R 362,454
- Rental Saving: R0,00
- Net costs for the owner R 657,982
