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Bank has sold my house worth R69,000 for R100 - Caller

7 April 2021 12:37 PM
Tags:
banks
auctions
buy home banks
Properties
Advocate Douglas Shaw

Banking law adviser Advocate Douglas Shaw says there should be an online auction where people can bid.

On this week's "Listeners choice" we received an email of banks allegedly auctioning repossessed properties less than their value and then selling them at a higher price, leaving the previous owner indebted to the bank.

At the beginning of this year, an article on the Moneyweb site revealed an affidavit file brought by Lungelo Ditokelo from Human Rights Foundation in support of an R60 billion class-action suit against the major banks, based on a sample of about 12 000 repossessed properties, which were found to be sold for 50-60% of their proper value, mainly through sheriff’s auctions.

ALSO READ: Some houses in Soweto were sold for R100 and even R10. Why would banks do this?

The class-action suit was defended by the banks seeking to recover billions of rands in lost home equity as a result of this practice.

What’s disturbing about the evidence is how far out of line South Africa is with practices elsewhere in the world.

Banking law adviser Advocate Douglas Shaw sheds more light on this.

We are involved in a court action to say banks must pay the people back. In a class action, Nedbank has come to and said they will compensate that person the difference. This should be regulated like in other countries. They sell your property and still want you to pay them instead of giving you the money.

Advocate Douglas Shaw

Caller Thandekile says her property worth R69,000 was sold for R100, only to be resold for R32,000 in 1999.

The ombudsman is paid by the banks and is not very helpful.

Advocate Douglas Shaw

For help use lawyers specialising in this. If you are struggling now better come to us and let us negotiate with the banks. There are all sorts of things that can be done, including paying over a longer period.

Advocate Douglas Shaw

There should be an online auction where people can bid online.

Advocate Douglas Shaw

You can contact him at lesley@bankinglawadvisor.co.za

Listen below for the full interview...




7 April 2021 12:37 PM
Tags:
banks
auctions
buy home banks
Properties
Advocate Douglas Shaw

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