For example, imagine a homeowner called Bob who has a house worth R1m with a bond of R400 000. Bob is a gambling addict, and has maxed out all his credit cards at various casinos. He has defaulted on some debt and as a result, is blacklisted with the credit bureaus.
Frustrated, Bob types the word "blacklisted" into the search engine Google. The first result is an advert for AMS (really, try it yourself), which states: "Homeowner? Been Declined? We can Help!"
Poor Bob is about to embark on a very expensive "cure" for his gambling debts.
AMS helps Bob transfer his house into a shelf company. This is where you come in. You become the sole director of the shelf company and use your clean credit record to apply for a loan equivalent to 100% of the value of Bob's property, or R1m.
From the R1m, AMS takes R100 000 and splits this 50/50 with you. It keeps another R100 000 in trust, as a form of security, and pays the remaining R800 000 to Bob.
Bob uses the R800 000 to settle his R400 000 home loan, as well as all his credit cards and other debt. He is now free to apply to the credit bureaus to have his name taken off their blacklists.
Bob agrees to pay the new instalments (for the R1m loan) directly to AMS, who in turn pays them over to the bank on your behalf.
If Bob does not reform his gambling habits and defaults on his payments, AMS will sell his house and settle the outstanding home loan.
Once Bob has a clean credit record, he is free to apply for a home loan in his own name, and AMS helps transfer the property back into his own name. Once the property is back in his name, AMS releases the R100 000 that it kept in trust. AMS says the whole process typically takes a maximum of 18 months.
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