There has been a collapse in terms of home loan lenders in South Africa in the year 2008. This thing has created panic as well as resulted into the downturn for the economies in most countries. On the investigation, it has been found that these companies would collapse as the result of granting mortgages that has been higher than the actual value of the properties. For most cases, it is like 125%. For instance, it only means that the buyer of a property, which is worth R1,000,000 would be provided with a loan of about R225,000 in order to help you in settling up with your new home and have additional funds in order to help you for paying again the mortgage. If you'd like to apply right now, please visit www.homeloanssouthafrica.org for application instructions.
So, whenever the borrowers have defaulted upon their payments and the properties they have has been reposed, these lenders found out that they could not simply recoup the value of an outstanding mortgages when you are trying to resell the homes. This kind of situation is known as the negative equity and the lending institutions could have the mechanisms in place in order to prevent such type of situation from happening again.
If you think you need a new home, yet you cannot afford it, it would be best for you to consider getting home loans for blacklisted people. This way, you can still help yourself have the home you want without worrying that it will only be cancelled and end up that you could never have it.