Buying a home is often the biggest financial commitment you’ll ever make. But life can be unpredictable — retrenchment, illness, or unexpected expenses can suddenly make it difficult to keep up with monthly bond repayments. Missing a payment doesn’t mean you’ll automatically lose your home. What matters most is how quickly you act.

Notify Your Bank Immediately

If you know you’re going to miss a payment, or you’re already struggling, the first call should be to your bank. Banks prefer communication over silence. They don’t want to repossess your property - it’s expensive and time-consuming for them too. By engaging early, you may be offered short-term relief options like:

• Payment holidays;

• Restructured repayment terms; or

• Temporary reduced instalments.

Acting quickly shows willingness and gives you more options before things escalate.

What Are the Consequences of Missing Payments?

If payments continue to be missed, the consequences become more serious:

• Arrears and interest charges – You’ll be charged interest and penalties on missed instalments.

• Credit score impact – Defaults are reported to credit bureaus, making it harder to access credit in the future.

• Legal action – If arrears build up, the bank can issue a summons and seek judgment.

• Worst-case scenario: repossession – If no arrangements are made, the bank may attach the property and proceed with a sheriff’s auction to recover the debt.

Assisted Sales: A Better Option

Before things reach repossession, many banks offer an assisted sale process. You place the property on the market, often with the bank’s guidance. The goal is to sell at a fair market price rather than through a forced auction. This approach usually means a quicker sale, less stress, and a far smaller impact on your credit record.

Sheriff’s Auctions: The Last Resort

If all else fails, the property can be sold at a sheriff’s auction. These sales often fetch much lower prices than market value. You may still remain liable for the outstanding shortfall if the auction price doesn’t cover your bond. It also leaves a serious black mark on your credit profile.

Downsizing and Starting Fresh

If your current home has simply become unaffordable, it’s often better to downsize on your own terms rather than wait for arrears to spiral. This way, you protect your credit record and keep control of the sale.

At Phoenix Bonds, we can assist with a prequalification for your next purchase so you know exactly what price range you can afford before you list your current property. This allows you to plan ahead and move smoothly into a more affordable home without unnecessary stress.

The Key: Act Quickly

The earlier you act, the more control you have. If you know you’re in trouble:

• Talk to your bank right away;

• Consider downsizing before arrears pile up;

• Use a prequalification to guide your next purchase; and

• Seek advice from a financial advisor or attorney if you’re overwhelmed.

Conclusion

Missing a bond repayment isn’t the end of the road - but ignoring the problem can quickly turn into a financial disaster. Banks are far more willing to help if you engage early. By acting quickly, you keep the power to restructure, downsize, or sell on your terms - avoiding repossession, sheriff’s auctions, and long-term damage to your credit score.

Phoenix Bonds is here to help you take the next step with confidence. Whether you need a fresh start in a smaller property or simply want to know what you can afford, our prequalification process gives you the clarity you need.