How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Freddie Lombard Your Own Question
Freddie Lombard
Freddie Lombard, Attorney
Category: South Africa Law
Satisfied Customers: 2561
Experience:  Practicing attorney and conveyancer with 16 years post article experience.
75614155
Type Your South Africa Law Question Here...
Freddie Lombard is online now
A new question is answered every 9 seconds

I co-signed a home loan in 1997 but the house was auctioned

Customer Question

Hi
I co-signed a home loan in 1997 but the house was auctioned off in 2001 due to us not being able to make payments at that stage. A shortfall was left on the house after auction - outstanding amount currently in excess of R117 000.
We have since parted at least 13 years ago.
I started banking with Standard bank and after about a year they started taking money from my current and savings account for money outstanding on that loan.
I am currently under debt review and would like to know what the statute on outstanding loans are, and what I can do to stop them from taking money from my account without informing me. To the best of my knowledge there is no court judgement for this loan.
Submitted: 1 year ago.
Category: South Africa Law
Expert:  Freddie Lombard replied 1 year ago.
Good afternoon,
Thank you for your question. I will try to assist you in answering it today but please feel free to ask as many follow up questions as you like until you are 100% satisfied.
Please be a bit more specific on what you mean with "what the statute on outstanding loans are"?
If the house was sold on auction, this means that there was most definitely a court judgment taken before the sale. Such a judgment is enforceable for 30 years.
The bank can not however take money from your account without a garnishee order. This will be an unfair practice, but I do know the banks do this despite it being unlawful.
The easiest way for you to bypass this is to move your bank account to a different bank. Otherwise, you can apply to court for an order to stop them from taking your money on the grounds that you cannot afford it.
There may have been some term in the agreement that would have given the bank the right to do this, but since they have taken legal steps, they can only act in terms of the order made by Court.
I hope this answered your question.
I know it will take an extra minute of your time to rate my service, but if you do not rate it, I do not get paid by the website so I would really appreciate it if you would be so kind as to rate my service positively. Feel free to ask further question here on this topic at no extra cost if you need more information.
Regards