Heads up about ABSA bond cancellations.

K

Kilgore_Trout_Redux

Executive Member
Joined
Sep 20, 2006
Messages
7,498
Reaction score
347
We've been trying to sell our place for over six months and have finally found a likely buyer. (We're losing money in the sale thanks to our awful timing but that is another very bitter story.)

Anyway, back to the point: Like good little bond holders we wrote a letter to ABSA giving our three months notice of intent to cancel our bond so we don't pay penalties just before we put the house on the market.

Luckily for us my wife phoned their bond cancellation department and found out that the whores have changed the rules without notifying us. Now a bond cancallation letter is only valid for three months after which you need to give another 90 days notice or you need to pay the penalty for early cancellation again.

This may sink the sale of our house. I hope all the rotten skunks at ABSA die in a fire.

This is not a pleasant surprise just when everything else seems to be going wrong too.
 
On the sale of the house just pay the bond to a nil balance and leave it at that.

I paid my bond off in the middle of last year and it lay dormant until December when I took the full bond amount to purchase another property.
I notified ABSA and for the time that it was dormant I don't think that they charged the R28 fee.
 
Yes... keep the bond. You will have to apply for it again if you need money so rather keep it active. My parents-in-law have had a zero bod for years.
 
BrendanD said:
We've been trying to sell our place for over six months and have finally found a likely buyer. (We're losing money in the sale thanks to our awful timing but that is another very bitter story.)

Anyway, back to the point: Like good little bond holders we wrote a letter to ABSA giving our three months notice of intent to cancel our bond so we don't pay penalties just before we put the house on the market.

Luckily for us my wife phoned their bond cancellation department and found out that the whores have changed the rules without notifying us. Now a bond cancallation letter is only valid for three months after which you need to give another 90 days notice or you need to pay the penalty for early cancellation again.

This may sink the sale of our house. I hope all the rotten skunks at ABSA die in a fire.

This is not a pleasant surprise just when everything else seems to be going wrong too.
Click to expand...
The banks love to play that game. Their excuse is that you should have asked. I notified the ombud about this, but they haven't done squat.
 
Nerfherder said:
Yes... keep the bond. You will have to apply for it again if you need money so rather keep it active. My parents-in-law have had a zero bod for years.
Click to expand...
It may cost you around R500 to cancel a bond. It also is used by the bank to cover any insurance you may owe them. If you don't pay, they stick it on the bond account and then whack you with the interest. Be careful.:rolleyes:
 
Frankie said:
On the sale of the house just pay the bond to a nil balance and leave it at that.

I paid my bond off in the middle of last year and it lay dormant until December when I took the full bond amount to purchase another property.
I notified ABSA and for the time that it was dormant I don't think that they charged the R28 fee.
Click to expand...

The difference is that BrendanD is selling his house. As a bond is registered over the property it is not possible to sell that property unless the bond is cancelled (Unless both bond and property are in the name of a legal entity in which case it may be possible for the buyer to take both over)
 
mikef said:
The difference is that BrendanD is selling his house. As a bond is registered over the property it is not possible to sell that property unless the bond is cancelled (Unless both bond and property are in the name of a legal entity in which case it may be possible for the buyer to take both over)
Click to expand...
And the deeds are held by the bank

/ot
What would happen if the owner dies (inheritance wise)?
 
WheHEhen I read "ABSA" I knew.... How many times will you guys ignore my advice and change banks? I don't care if you give your money to a druglord Nigerian. Get AWAY from ABSA!!!!
 
mikef said:
The difference is that BrendanD is selling his house. As a bond is registered over the property it is not possible to sell that property unless the bond is cancelled (Unless both bond and property are in the name of a legal entity in which case it may be possible for the buyer to take both over)
Click to expand...
You're right - In my case I kept the property that's linked to the bond.
 
When you sell the property the mortgage is cancelled as part of the sale. This is a different situation to cancelling the mortgage for any other reason. It usually says as much in the mortgage contract.
 
The bond will have to be cancelled as the asset bonded no longer belongs to the bond owners and cannot provide the required surety.
 
but if the deceased had life insurance it would have been paid off provided that it was enough to cover the balance of the bond.

In that case, I wonder is the person who inherited the property would have to pay anything . . . probably not.
 
Old thread, I know. How much interest do ABSA charge?

I found this here. http://www.madeleyn.co.za/newsitem.php?newsid=35

ABSA

The 90 day penalty interest clause forms part of all Mortgage loan agreements that the client signs at the Attorneys prior to registration and is in line with the National Credit Act for all large finance deals.

Clients are requested to give 90 day notice for all pre-existing and new home loans. Any home loan that is closed where customers have failed to give Absa 90 day prior notice of the intention of such closure, 90 days penalty interest will be levied to this account.

In cases where customers give notice within a shorter frame than the 90 days, the interest calculation will be reduced by such period. For example if client gives notice 30 days before account closure he will only be liable for the remaining 60 day period.

Penalty interest will not be waived even if the customer brings his next bond to Absa.

Notice to cancel a home loan can be given to any ABSA Branch or Absa Contact Centre 0860023646 or fax to 0860109303.
Click to expand...

What is "90 days penalty interest"?
Is that basically the interest portion of 3 months worth of payment that they will charge?
 
Think Absa did this to me too.

If I didnt check after moving my bond to Investec they would have made a nice quick R30 000 profit..

Struggle to give notice in March this year. Contacted their call centre and asked how I could do so.
Was instructed to send an email to [email protected] which I did.
While dealing with transferring attorneys I numerously stated they need to check that I dont pay cancellation fees as I never received any response from Absa's said email address...

Bond registered with Investec only September this year, found out they settled about R30 000 more than I would have expected...

Nobody notified me. Buggers.
I WONT take this lying down :)
 
Cancelled my bond with ABSA this year after paying it off. Went to the bank and asked what needs to be done to cancel bond and they said they have never had anyone come to cancel a bond so they have no idea. Had to get the original lawyers to cancel the bond.
 
Ou grote said:
Was at ABSA this afternoon and the best they could do was tell me that they don't have the formula, the "people in Kempton" calculate it.
Click to expand...
Must say I'm getting tired of these castrated "branches" SA companies are recently deploying. Its not just that the staff is clueless...they deploy these shtty restricted IT systems where staff can't see any useful info anyway regardless of whether their competent ("go to regional office - we can't see the info"). (Yeah MTN - go shove that story somewhere).
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X