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The purpose of this communiqué is to advise of the maximum LTP/LTV caps that will be applicable to the purchase of property from an Absa “Easy Sale” process, from a public auction of the Absa property or an Absa Property in Possession (PIP’s), which are effective immediately.
Absa Home Loans will consider finance up to 100% of the purchase price of a property from an Absa “Easy Sale” process, from a public auction of the Absa property or an Absa PIP.
All lending of this nature must be assessed by Credit Lending, i.e. a manual assessment.
The finance is only available on properties where the current loan to value (LTV) on a distressed Market-to-Market (MTM) value basis is ? 100%
i.e. Balance outstanding on loan – R105,000-00
Purchase Price on Easy Sale or public auction – R80,000-00
Bank’s current market value of the property – R100,000-00
Purchase price to market value – 80%
MTM Lightstone distressed value – R90.000-00
Current loan to MTM valuation – 116%
Credit Lending will be provided with a monthly listing displaying the MTM valuations or upon request for specific applications.
A copy of the Deed of Sale/Offer to Purchase, signed by all parties, must be submitted as supporting documentation for the application. The finance is only available to existing Absa customers achieving the requisite minimum scorecard cut-off, but excludes all non-scored applications, self-employed applicants and vacant land.
The amount of the finance will be based solely on the purchase price of the property.
When the property being acquired is currently an Absa PIP, then the requirements relating to the property price achieved and the LTV/MTM will not be applicable. However, all remaining conditions will need to be met for the applicant to qualify.