Widow Fights Unlawful Home Repossession and Auction by SA Home Loans

Widow Fights Unlawful Home Repossession and Auction by SA Home Loans

Widow Fights Unlawful Home Repossession and Auction by SA Home Loans: A widow in Durban, South Africa, faces eviction after her home was allegedly unlawfully repossessed and sold at auction for a fraction of its value by SA Home Loans (SAHL). The woman claims that the repossession and sale were based on a “non-existent” judgment and that she had already settled the arrears. She has taken her case to the Durban High Court. The National Credit Act (NCA) and a 2016 Constitutional Court ruling in Nkata v FNB state that any defaulting borrower who settles their arrears automatically reinstates their mortgage agreement, stopping any legal action. Legal consultant Leonard Benjamin alleges that credit providers are undermining the Nkata v FNB judgment by pursuing foreclosure using redundant legal proceedings after arrears have been settled.

Unlawful Home Repossession and Auction in South Africa: What You Need to Know

In recent years, South Africa has seen a surge in cases involving unlawful home repossession and auction. Often, these cases involve vulnerable homeowners who are unaware of their rights and the protection offered under the National Credit Act (NCA). In this blog post, we will explore the issue of unlawful home repossession and auction in South Africa, discuss the relevant laws and regulations, and offer advice on how homeowners can protect themselves from such unfair practices.

Unlawful Home Repossession and Auction: The Problem

In South Africa, many homeowners face financial difficulties and may fall behind on their mortgage payments. This can lead to a situation where lenders take legal action to repossess and auction the property. While this is a legal process, there are instances where lenders and other parties act unlawfully, leaving homeowners in even more vulnerable positions.

These unlawful practices can include:

1. Ignoring the National Credit Act: Lenders may disregard the NCA, which offers protection to homeowners who are in arrears with their mortgage payments. The NCA requires lenders to follow specific procedures before taking legal action, such as offering debt counseling and providing homeowners with a reasonable opportunity to catch up on their payments.
2. Misusing the acceleration clause: Some lenders might use the acceleration clause in the home loan agreement to call up the entire outstanding balance when a homeowner misses a monthly payment. This can make it impossible for the homeowner to save their home, as they would need to pay the entire outstanding amount instead of just the arrears.
3. Ignoring the right to reinstate a credit agreement: Under Section 129(3) of the NCA, homeowners have the right to reinstate their credit agreement by paying the arrears and any authorized legal costs. This right was clarified by the Constitutional Court in the 2016 Nkata judgment. However, some lenders may ignore this right, leading to unlawful repossession and auction.
4. Failing to set a reserve price: Since 2018, South African law requires a reserve price to be set for properties sold at auction. This minimum selling price prevents properties from being sold for a fraction of their market value. Some lenders and sheriffs may ignore this requirement, leading to unfair outcomes for homeowners.

Protecting Yourself from Unlawful Home Repossession and Auction

As a homeowner in South Africa, it’s crucial to be aware of your rights and the protection provided by the NCA. To protect yourself from unlawful home repossession and auction, consider the following steps:

1. Understand your rights: Familiarize yourself with the NCA and your rights as a homeowner, particularly regarding the right to reinstate your credit agreement.
2. Seek legal advice: If you’re facing repossession and auction, seek legal advice from an experienced attorney who can help you navigate the process and ensure your rights are protected.
3. Keep records: Maintain accurate records of all communication with your lender, including payment arrangements, notices, and correspondence.
4. Monitor legal proceedings: Stay informed about any legal proceedings involving your property and ensure that your lender and the sheriff are following the correct procedures.
5. Be proactive: If you’re struggling with your mortgage payments, reach out to your lender to discuss possible solutions before the situation escalates.

Unlawful home repossession and auction in South Africa can have devastating consequences for homeowners. By understanding your rights and the protection offered by the National Credit Act, seeking legal advice, and remaining proactive in managing your mortgage, you can help safeguard your home and financial future.

Protecting Your Home from Unlawful Repossession: Steps to Take and How Real Estate Assist Can Help

Safeguard your property and finances by understanding your rights and seeking professional assistance

1. Understand your rights under the National Credit Act (NCA) Familiarize yourself with the NCA, which protects borrowers by outlining their rights and responsibilities. The NCA mandates credit providers to follow strict procedures when dealing with defaulting borrowers, ensuring that any legal action is stopped if arrears are settled. By understanding your rights under the NCA, you can recognize any breaches by credit providers and take appropriate action.
2. Keep track of your mortgage payments and communication with lenders Maintain records of all mortgage payments, correspondence with lenders, and any legal documents related to your property. In the event of a dispute, these records will be vital in proving your case and protecting your property from unlawful repossession.
3. Communicate proactively with your lender If you face financial difficulties or anticipate defaulting on your mortgage, reach out to your lender immediately. Open communication can help you negotiate alternative arrangements, such as payment plans or refinancing options. Lenders may be more inclined to work with borrowers who are proactive and demonstrate a commitment to resolving their financial issues.
4. Seek legal advice If you suspect any irregularities in your mortgage agreement or face the threat of repossession, consult a legal professional. An attorney specializing in property law can help you navigate the complex legal landscape, ensuring your rights are protected and offering guidance on potential legal remedies.
5. Explore alternative solutions with Real Estate Assist Real Estate Assist offers a range of services designed to help distressed homeowners protect their properties and finances. Their solutions include:

• Stopping foreclosure and legal action Real Estate Assist can collaborate with creditors and industry professionals to halt foreclosure, legal action, and property auctions, giving homeowners a chance to address financial challenges and keep their homes.
• Consolidating debt By consolidating multiple debts into a single manageable payment, Real Estate Assist can help homeowners regain control of their finances and avoid the risk of repossession.
• Unlocking equity from your property Real Estate Assist can help homeowners access the equity in their properties to address urgent financial needs, settle debts, or provide immediate cash flow.
• Improving credit scores Real Estate Assist offers a financial courage program that assists homeowners in rebuilding their credit scores and increasing cash flow, ultimately reducing the risk of repossession.
• Maximizing proceeds from property sales For those who need or want to sell their properties, Real Estate Assist can help maximize profits by offering guidance on improvements and renovations, ensuring homeowners receive the best possible return on their investment.

By taking these steps and seeking the professional assistance of Real Estate Assist, homeowners can protect their properties from unlawful repossession and maintain control of their finances.

Real Estate Assist is your Home Repossession and Auction Solution in South Africa

• We help stop home auctions and repossessions in Cape Town
• We help stop home auctions and repossessions in Johannesburg
• We help stop home auctions and repossessions in Bloemfontein
• We help stop home auctions and repossessions in Durban