House buying advice

[Djin]

Looking for a bit of advice from the legal beagles or someone who might have experience in this field.

We have put an offer on a house that we really like (obviously). Agent told us the couple are going through a divorce so they are looking for a quick sale. Now we find out that the hubbies company has been liquidated, but don’t worry says the agent the house is still on the wife’s name. The offer amount is LESS than the amount the couple owe the bank. They just need to find out from the bank if they can settle the outstanding balance of the bond separately. If hubbys company is going through liquidation, surely they will be attaching assets (i.e house) to recover costs? How does this work as the house is still owned by the bank.

The last thing we need is to be caught up in a legal battle when it comes time to transfer etc. Should I run? Or is there a way to get a simple answer here, i.e by phoning up the bank and getting a straight forward answer. What questions should I be asking?

Look worst case I will have to pull a Humberto and fight somebody for their house. Seems less stressful.

 

[Venomous]

I don't know about the liquidation story...

If a bank is about to take the house back and say bank is owed 600k, but sellers accept say a 500k offer. Then the remaining 100k is for the seller's account to settle, either via outright payment or via a further repayment agreement between themselves and the bank.

 

[supersunbird]

Looking for a bit of advice from the legal beagles or someone who might have experience in this field.

We have put an offer on a house that we really like (obviously). Agent told us the couple are going through a divorce so they are looking for a quick sale. Now we find out that the hubbies company has been liquidated, but don’t worry says the agent the house is still on the wife’s name. The offer amount is LESS than the amount the couple owe the bank. They just need to find out from the bank if they can settle the outstanding balance of the bond separately. If hubbys company is going through liquidation, surely they will be attaching assets (i.e house) to recover costs? How does this work as the house is still owned by the bank.

The last thing we need is to be caught up in a legal battle when it comes time to transfer etc. Should I run? Or is there a way to get a simple answer here, i.e by phoning up the bank and getting a straight forward answer. What questions should I be asking?

Look worst case I will have to pull a Humberto and fight somebody for their house. Seems less stressful.

The whole thing depends on the couples marriage contract, in community of property or not and such.

 

[Djin]

I don't know about the liquidation story...

If a bank is about to take the house back and say bank is owed 600k, but sellers accept say a 500k offer. Then the remaining 100k is for the seller's account to settle, either via outright payment or via a further repayment agreement between themselves and the bank.

This seems to be the case according to the Agent. I'm just not sure why the hubby's liquidation is brought up unless ...

The whole thing depends on the couples marriage contract, in community of property or not and such.

Bingo^

But what I like to know is, would the liquidators attach a house that they know the owners are OWING more than it is worth. I've looked at their purchase price of this property (3 years ago) and they bought way too high, I'm talking about over a bar too high! So their bond amount is higher than the property value.

 

[chrisc]

You need to speak to the bank's attorneys for a ruling. That is what the bank will be doing. I bought a house like this in Hemel en Aarde estate in Hermanus. The joint owners were getting divorced and the estate agent was taking guesses, so I approached the attorneys who registered the bond and asked them what to do.

They took about 5 days to tell me that provided the couple separately signed an affidavit that they were prepared to dispose of the house to me for a standard condition of sale agreement, I could have the house for the agreed sum and any shortfall in the amount owed had to be settled by the two sets of attorneys managing the divorce.

The house had originally been sold new for R 3.8m and I got it in January last year for R 3.2m. I have no idea what was owed on the mortgage but the owner's wife was a big big spender which led to the breakdown in their marriage.

 

[Djin]

Thanks chris I will get hold of the bank (Not sure who will have the attorneys details, but I will ask them) and take it from there.