What must you do if you know that you are going to miss a bond instalment

Lake Properties                       Lake Properties

Lake Properties                       Lake Properties

Perfect, let’s go step by step and go deeper into what happens in South Africa if you miss bond instalments 👇

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🔎 What Happens If You Miss a Bond Payment?

✅ First missed payment (0–30 days late)

• The bank’s system flags your account as in arrears.
• You’ll get an SMS, email, or phone call from the collections team.
• The bank might charge a late payment fee + interest on the arrears.
• Best move: Pay as soon as possible, or contact the bank to make an arrangement.

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✅ Second month missed (30–60 days late)

• You’re now 2 months in arrears.
• The bank will start calling more urgently and may send written notices.
• If you still don’t pay, they may block access to further facilities (like redraws or credit cards if linked).
• Risk: Your credit record is now at risk of being negatively affected.

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✅ Third month missed (60–90 days late)

• You’re now seriously in default.
• The bank can issue a Section 129 Notice (National Credit Act).
  • This is a legal letter saying you are in breach of your home loan agreement.
  • It warns that if you don’t settle or make arrangements, they can start legal action.
• At this stage you still have the right to:
  • Reinstate the bond by paying the arrears.
  • Negotiate repayment arrangements.
  • Enter debt review (through a registered debt counsellor).

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✅ 90+ days late (legal stage begins)

• If you ignore the Section 129 notice, the bank can:
  1. Summon you to court for repossession.
  2. Ask the court for a judgment and a writ of execution (to attach your property).
  3. The sheriff of the court can then put your house up for sale in execution (public auction).

⚠️ Important: Even if the house is sold, if the auction price doesn’t cover your bond, you are still liable for the shortfall.

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🛡️ How to Protect Yourself

1. Talk to your bank early — don’t wait until month 3.
2. Ask for payment restructuring:
   • Extend your loan term to lower instalments.
   • Pay only interest for a period.
   • Get a short “payment holiday.”
3. Apply for debt review before legal action if your finances are tight overall.
4. Sell the property voluntarily if you know you cannot recover — you’ll get a better price than a bank auction.

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⚖️ Timeline Summary

• 1 month missed: Small fees + warning.
• 2 months missed: Collections intensify, credit score at risk.
• 3 months missed: Section 129 notice, legal threat.
• 3–6 months missed: Bank can go to court → repossession.

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👉 In short: Missing 1 payment isn’t the end of the world if you act fast. But missing 3+ payments without communication can put your house at serious risk.

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