A single mother of four is facing eviction after falling in arrears in paying her home loan, and after several legal battles spanning nearly four years, her house was sold earlier this month at auction for a measly R5 000.

Patricia Mzamo is devastated, as she has no idea where she and her children will end up. She does not dispute that the bondholder over her Randburg home – SA Home Loans – followed the legal route in trying to obtain payment after she fell in arrears.

But Mzamo’s question is, why was the property sold at auction for R5 000, while she all along tried to negotiate a settlement with them?

She said she was shocked when she recently received correspondence from SA Home Loans’ lawyers that the property was sold at auction on April 2 for R5 000 and that the transfer process is currently under way.

According to SA Home Loans, the current balance on the bond is R1 029 178.72, while the arrear is R582 790.37.

She was informed that once the purchaser had complied with the requisite provisions, the purchaser may take possession of the property, and she therefore had to vacate the property as soon as possible.

Mzamo said that to make matters worse, she is still liable for her debts.

The lawyers informed her that she is liable for the full amount due and owing on the bond account, due to the shortfall (after the property was sold for R5 000) on the amount she owed.

She was advised to still service the bond by paying what she can afford, to reduce the shortfall figure in the end.

In responding to Mzamo’s situation, SA Home Loans attorney Chandika Chaithoo said proceeding to a sale in execution is not taken lightly, nor is it their preferred outcome, and it is always a last resort.

“SA Home Loans always looks for ways to work with our clients who find themselves under financial stress to find a solution that assists the client to resolve their situation while protecting the interests of SA Home Loans.”

Chaithoo said they are also always willing to work with their clients to sell their property privately to obtain maximum value and payment into the bond account in instances where they are unable to settle the arrears or enter into a (feasible) payment arrangement.

She pointed out that there is judicial oversight during these proceedings, which include the setting of court reserves for the sale in execution.

Asked why the property was sold only for R5 000, Chaithoo responded: “It should be taken into account that the successful bidder at a sale in execution is not only liable for the payment of their bid, but also has to settle any outstanding rates, levies, or utility bills on the property as well as the costs of the auction and the transfer of the property.”

Mzamo, meanwhile, said that she fell on hard times when she lost her job due to retrenchments. She is, meanwhile, working in the property industry, but she does not have a constant income as she earns commission as and when she sells a property.

According to her, she tried her utmost best to sell her home herself, but as it is in an unsafe neighbourhood, she struggled.

She also tried to secure the R100 000 she said SA Home Loans was willing to accept to avoid selling the property at auction, but she could not come up with the money.

But the news that her home was now sold for R5 000 is something Mzamo cannot comprehend, especially as she is still left with all her debt.

zelda.venter@inl.co.za

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