Please note: this is not a loan and the Body Corporate Home Owner Association’s does no repayment on a monthly basis.
How does the debt purchase work?
- Step 1:Trustees and Directors are entitled to sell their debt and enter into an agreement with StrataFin. The debt is recovered from the individual debtor. *
- Step 2:The individual debtor pays off the debt to StrataFin with an interest rate at 2%, per month, monthly compounded as allowed by law.
- Step 3:Legal fees and recovery costs are owed by the individual debtor and recovered from the debtor directly. StarataFin will handle the issuing of clearance certificates on these units owing money to StrataFin.
- Step: 4Once the agreement has been accepted and signed by both parties, payment will be made within 7 working days.
The StrataFin Credit Committee will assess a debt purchasing request from a Managing Agent, Body Corporate or Home Owners Association based on the following criteria:
- Up-to-date age analysis detailing the total outstanding levies and amounts due.
- Detailed ledger accounts of the individual debtors; dated from when the arrears (money owed) arose to current.
- Unit numbers, as per SG (Surveyor General) Diagram and/ or title deed, in respect of the units owing money.
- Owner details in respect of the units owning money
- Full names
- All contact details
- All postal details
- All residential details
- Registered conduct rules of the Body Corporate or Home Owners Association.
- AGM (Annual General Meeting) notices and budgets for the periods involved in respect of the outstanding levies
- Minutes of the AGM’s for the periods involved in respect of the outstanding levies.
- Minutes of the Trustees meetings after the conclusion of the AGM’s confirming the raising of levies.
- Proof letters sent out to owners confirming the raising of levies.
How do we evaluate debt purchase and factors taken in consideration on the debt purchase:
- The age of the debt
- The amount outstanding
- Value of the unit
- Legal compliance by Body Corporate or Home Owners Association
- Location and value of the complex
- Relationship between outstanding amount and value of unit
- Reason for non-payment
What will be done by the credit committee in it’s assessment of the outstanding debt?
- All the required documents will be thoroughly assessed.
- Desktop valuation of the unit.
- Assessment of the overall condition of the complex/ building.
- The owner may be contacted to further understand the reason for non-payment.
- All of this information will be critically analysed in accordance with the StrataFin model.
*Terms and Conditions Apply