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Freddie Lombard
Freddie Lombard, Attorney
Category: South Africa Law
Satisfied Customers: 2671
Experience:  Practicing attorney and conveyancer with 16 years post article experience.
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I have been under Debt counseling since 2014. My home loan

Customer Question

Hi, my name is Marina. I have been under Debt counseling since 2014. My home loan has been paid as agreed monthly and now they claim arrears of R70 000. If not paid immediately they will repossess my home and sell it on auction. There was one short payment of ~R1500 in the past month. Can they do this? What are my further actions?
JA: Real Estate issues can be tricky and expensive. The Lawyer will need to help you with this. Have you talked to a lawyer yet?
Customer: Not yet, have been speaking to my debt counsellor and they said that I should speak to the bank, but the bank wants the full R70 000 which I don't have now
JA: Anything else you think the lawyer should know?
Customer: The house is registered jointly under my name and my ex, but he is out of reach and everything gets directed to me. I have paid the bond the whole time though without contribution from him
JA: OK. Got it. I'm sending you to a secure page on JustAnswer so you can place the $5 fully-refundable deposit now. While you're filling out that form, I'll tell the Lawyer about your situation and then connect you two.
Submitted: 1 year ago.
Category: South Africa Law
Expert:  Freddie Lombard replied 1 year ago.

Hi there

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.

I am afraid that the Debt Counseling will not help you if you have defaulted with a payment. The creditors will be fully entitled to proceed with further legal steps against you in this case.

Your options are limited to negotiate with the bank. They usually have options available whereby they can assist you with selling the property or changing your monthly payment amount. Unfortunately this is a negotiation and they do not HAVE to assist you if they do not want to.

Your last option is to either market the property yourself in order to get a good price for it or to apply for sequestration of your estate if you are unsuccessful with everything else.

If you do not do anything, the bank will issue summons against you and if they obtain judgment, they will sell the property on auction.

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

Customer: replied 1 year ago.
Hi Freddie, Thank you for the response.I have tried to negotiate with the bank, but they said I must pay all the arrears...a sum of R67000. I do not understand where this amount comes from? As I understood the debt would be restructured under debt review and subsequently if one made all the appropriate payments, you should not fall into arrears? The amount short paid was something like R1000 in the past two years. When I spoke to the bank they said that I must pay the Total arrear amount (R67000) for them to stop with legal action.
Expert:  Freddie Lombard replied 1 year ago.

They calculate the arrears on the original agreement that you had with them. It would be the difference between what you have paid and what you should have paid were it not for the debt restructuring.

Expert:  Freddie Lombard replied 1 year ago.

Hi there,

I have noticed that you have not yet rated my service and consequently I am not sure if you still need help from me or if you are satisfied.

Please rate my service positively if you are satisfied.

Kind regards