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Perfect, let’s go step by step and go deeper into what happens in South Africa if you miss bond instalments π
π 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.
✅ 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.
✅ 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).
✅ 90+ days late (legal stage begins)
- If you ignore the Section 129 notice, the bank can:
- Summon you to court for repossession.
- Ask the court for a judgment and a writ of execution (to attach your property).
- 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.
π‘️ How to Protect Yourself
- Talk to your bank early — don’t wait until month 3.
- Ask for payment restructuring:
- Extend your loan term to lower instalments.
- Pay only interest for a period.
- Get a short “payment holiday.”
- Apply for debt review before legal action if your finances are tight overall.
- Sell the property voluntarily if you know you cannot recover — you’ll get a better price than a bank auction.
⚖️ 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.
π 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.
