What is the procedure?

Letter of Demand:

The Bank or Financial Institution will then send you a letter of demand in terms of the National Credit Act wherein you are advised that you are in arrears and giving you an opportunity to rectify such breach of the loan agreement or indemnity. If no response is received by you then an instruction is sent to their Attorneys to proceed to foreclose on your property. The Attorneys will then draft a further letter of demand (which is not required as the Bank or Financial Institution has sent same to you already) giving you a further opportunity to rectify the breach.

Should you receive a letter of demand you should contact the Attorneys who addressed same to you alternatively the Bank or Financial Institution to make arrangements for payment. Unfortunately in a situation like this is does not matter if you have home insurance with Aviva (aviva.co.uk) or another company, the money will still have to be paid. Generally the Banks or Financial Institution are amenable to enter into arrangements with you (which are generally to the effect of half the arrears upfront and the balance of the arrears in three equal monthly instalments until all the arrears are paid up to date but of course each Bank or Financial Institution have their own procedures) and you have to keep to your arrangements made and ensure that all payments are made as any one default on those arrangements, the Bank or Financial Institution will then instruct their Attorneys to proceed against you until such time as all arrears have been paid to date and in full.

If you ignore the letter of demand in its entirety the Attorneys are then instructed to draft a summons and to have same issued and served on you via the Sheriff of the Court.