Good day, My husband and I had a home lo...

Asked by NthabisengH on 23-10-2014 15:30:09
Question posted in the Property Law category relating to Gauteng
Question value: R 300.00

Good day,
My husband and I had a home loan with std bank in 2007 of R364000,due to him loosing a job we couldn't pay the loan and the property repossesed. it was auctioned without our knowledge and it was auctioned at a much lower price, now we are left with paying the outstanding amount. we believe that Standard bank didn't make enough effort to ensure that they recover the most of their moner at the auction, are there any steps we can take against them.
Can we ask them to prove that they followed the correct procedure when auctioning the property and what are the costs involved in doing that?

Please advise

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Answer to the Question

Posted by Att. Patrick on 24-10-2014 12:35:45
Hi there and thank you for your question,

Yes, you are entitled to request from Standard Bank all of the supporting documentation regarding the auction, including when the auction was advertised, the terms and conditions of the auction, the sale agreement that was eventually signed, the account from the Sheriff who performed the auction which details the purchase price and the amount due and owing to Standard Bank, the accounts from the conveyancing attorney who did the transfer, a final reconciliation of the amount the property was sold for less the amount due to Standard Bank - which gives you the shortfall.

Distressed or repossessed properties are often sold at a below market rate. For this reason, if you have not paid off a substantial part of the equity in your property you may very well end up in a situation (like you are now in) where the property is sold and you are still paying off arrears.

You should first obtain all of the above documents, and then see if anything looks incorrect. If the property was sold at a proper auction, to a legitimate purchaser, and there is STILL a shortfall on the property, then you won't really have any way to challenge Standard Bank. This is a major problem.

Basically your relationship with Standard Bank was governed by contract - the loan agreement. It contains all of the terms of the loan, and would have stated that if you defaulted on the repayments Standard Bank would have been entitled to terminate the loan agreement, and call in the outstanding amount. In terms of law, they would have been entitled to attach and sell the bonded property.

If you could have challenged this while it was in Court (i.e. before a Court Order was granted) you might have been able to convince a Judge that he should NOT grant the order so that you could have sold the property yourself. But that didn't happen unfortunately.

If Standard Bank won't give you the documents, you can try the Sheriff's offices, or the conveyancing attorney.

Good luck! 

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Att. Patrick

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