Banks Can Sell Your House for Pittance, South African Court Rules

The question of whether a bank should be allowed to sell a debtor's home for an amount that is at least equivalent to the outstanding debt or to sell the property at any price was the subject of a Pretoria High Court judgment after Given Nkwane, who obtained a home loan from Standard Bank and had a mortgage bond registered in favour of the bank, informed the bank that he could no longer afford the instalments and wanted to sell his property. The bank instituted legal proceedings against Nkwane and successfully obtained a warrant of execution against Nkwane's home and sold his house for U.S.$3,323. At the time of the sale the insurable value of the house was nearly U.S.$41,540.

Given Nkwane’s home, valued at R470,000, was sold for R40,000 by Standard Bank after he defaulted on his home loan.