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Monday, October 12, 2009

Making use of the banks "quicksell" facility

If you are in trouble the banks have recently been offering clients the opportunity to have them help you move the property through their Quicksell facility. It's not a auction and there is a bit more control in this process.

For an Example : FNB have quicksell facility and a website called www.quicksell.co.za. They say the quicksell option offers advantages to both the distressed seller and the buyer. Often people try to sell their homes via an estate agent when they realise they can't keep up the payments, but have been unable to get offers high enough to repay their outstanding mortgages (remember this is not about making a huge profit rather about cutting ones losses).
As part of the quicksell deal, FNB discounts the seller's residual debt and saves on commission which would normally go to the estate agent. Buyers get a 50% discount on transfer costs and registration fees- these are good things.

It is important to note that should there be a shortfall the client would still be liable for this (you have to sign for it). However, as mentioned, the shortfall amount may be reduced(discounted) by the bank. Some have had the shortfall reduced by as much as R100 000.

Here are some of FNB's stated benefits:
  • An attractive discount, of minimum of R30, 000 or 10% of current outstanding loan balance (which ever is greater), will be applied.
  • Any shortfall is repayable at the prime lending rate.
  • You stay in control of the sale of the property, meaning a minimum reserve price will be agreed upon upfront.
  • The estate agent's commission will be covered by FNB Home Loans which is part of the discount offering.
  • FNB offers buyers up to 100% bonds on all Quick Sell Properties.
  • Buyers receive a 50% discount on both transfer costs and registration fees


This should be considered as an option for those who are really struggling to sell there property and who need to reduce their debt. After all the debt repayments on R50 000 outstanding maybe much more manageable than repayments on R900 000 each month... even after paying rent somewhere.

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