MSF Consolidation Solution (For Blacklisted Property Owners)

A blacklisted client (or the client with judgments against their name), is often unable to obtain sufficient finance in order to clear his name, even though he may have enough equity available on his fixed property. Credit policies and client scoring methods used by the major banks automatically disqualify any advances to such a client.

 Mortgage Secured Finance - enables the credit-strapped client to access the equity available on his fixed property. A bond with a private financier is obtained to replace the client’s existing bond, whilst sufficient funds are released to settle all outstanding debts, rescind all judgments and to clear all negative credit reports at the major credit bureaus.

The client grant his/her consent to obtain all relevant credit information pertaining to the client. Copies of recent bank and bond account statements are required, as well as proof of income. A sworn valuation of the property is obtained after a pre-approval phase.

This information is used to determine the viability of the debt consolidation exercise. The aim is to achieve two goals:

• Enhance client’s cash flow ( the exercise must result in lower monthly debt repayments )
• Protect the client’s balance sheet (debt must be settled and with enhanced cash flow, the bond can be re-paid over a shorter term).

LOAN & FEES QUOTATION – Real Life Example

Total Loan Approved : R341,075 :

Made up of :

Settle existing bond : R163,673

Settle all Debts : R154,602

Costs : R22,800

           = R341,075

Monthly installment BEFORE Consolidation : R9,951

AFTER Consolidation: R5,798

IMMEDIATE CASH SAVING PER MONTH = R4,153