Banks now favour co-ownership
http://moneyweb.co.za/mw/view/mw/en/page292525?oid=521577&sn=2009+Detail
We are in an era where it is increasingly difficult for people (especially young people who are not earning large salaries) to get bonds – but there are ways in which this can be achieved.
One of the most popular is to use a suretyship in which another individual (often a parent, sibling or co-habitee) stands surety for the bond and agrees to be responsible for it if the buyer falls behind on his or her monthly payments.
In theory this provides a 100% guarantee – but in practice, the banks have found that there can be more difficulties and delays in collecting a suretyship debt than a conventional mortgage debt.
This has led to their now insisting that the guarantors sign on as co-owners of the property.
I can see how the co-owner would be more willing to assist with the payments compared to a person who has just signed for surety. It is interesting to see that the banks now actually favour this though, but overall I think this is a good thing. Just be sure to read the article so you are aware of the dangers when buying property this way and what you need to keep in mind.
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