Couple get their house back two-and-a-half years after bank auction blunder
Nedbank has been slammed by a judge for auctioning off a house even though the owner’s bond repayments were up to date.
The successful bidder for the Rustenburg property sold it within two weeks for a profit of R179 000. But as a result of a judgment in the High Court in Mahikeng‚ the chain of deals two-and-a-half years ago must be unravelled and the house returned to the original owners‚ Joel and Dikeledi Makubalo.
The Makubalos also won a punitive costs order against Nedbank over what Judge Ronald Hendricks dubbed a “very disturbing” sequence of events.
http://www.sowetanlive.co.za/news/2017/07/10/couple-get-their-house-back-two-and-a-half-years-after-bank-auction-blunder
Home Evictions just became a whole lot harder
A recent Constitutional Court judgement has ruled that residents cannot be evicted if they would be left homeless. The onus falls on the municipality to provide housing before they vacate the property.
Against the backdrop of the uncertain South African economy there is one question that is regularly asked: what is the best investment to make? What is a solid investment that is robust, secure, proven, will weather economic storms and will stand the test of time? According to many self-help books and billionaire biographies the resounding response is to invest in property.
What better way to make money than to invest in an appreciating asset that someone else, aka your tenant, is paying for? Enlightened landlords know that the South African rental industry is not without its challenges, not least of which is the hiccup of evicting non-paying tenants. Up until now, evicting someone from your property has been a well-travelled road of following the procedures, complying with PIE and eventually, armed with your court order, booting the freeloaders off your property. Without a doubt it’s a costly and lengthy process, but the promise of a legally enforceable eviction order at the end of it makes it all worthwhile. Until now. The Constitutional Court has just added a detour on this road to eviction. And who knows where it’s going to lead?
While we don’t know where this story ends, we do know where it started. Sometime during 2012 Mr Maseko decided to put his pension funds to work, and what better way than to follow the lead of billionaire property tycoons by investing in property? Even better, he found an apartment block being sold by a company in liquidation, giving him the upper hand negotiating the price. And being rather dilapidated the property gave him the opportunity to manufacture asset growth by renovating then renting out his shiny new units for a higher rental. One small problem: the property was already occupied. By no less than 184 impoverished individuals who had no intention of going anywhere.
https://www.privateproperty.co.za/advice/news/articles/evictions-just-became-a-whole-lot-harder/5620
More consumers struggling with debt
His comments come despite inflation slowing to 6.3 percent in February – from the 6.8 percent seen a few months ago, and the South African Reserve Bank effectively holding the prime lending rate stable at 10.5 percent over the past few months.
Roets says the company has seen a 20 percent growth rate over the past 12 months in clients applying for debt review.
His remarks follow those of Capitec Bank, which on Tuesday noted that applications for debt review grew 19 percent in the year to February, while 15 percent more clients submitted retrenchment letters to the bank.
Capitec notes, in its statement to shareholders, that the “financial stress and economic difficulties experienced by clients during the year were evident.”
http://www.iol.co.za/business-report/economy/more-consumers-struggling-with-debt-8399328
1,000 SA families are losing their homes every month to crushing debt
There has been a substantial increase in financially distressed consumers applying for debt review in the past financial year.
Neil Roets, CEO of debt counselling firm, Debt Rescue, said the company had shown a growth rate of well over 20% in the number of clients seeking debt counselling.
Earlier this week, Capitec bank also reported that it had notched up a 20% growth in its clients that had applied for debt review. The bank said 15% more customers had handed in retrenchment letters as supporting documents to be placed under debt review….
https://businesstech.co.za/news/banking/166959/1000-sa-families-are-losing-their-homes-every-month-to-crushing-debt/
Calls grow for class action law suits against banks over securitisation
Disgruntled bank customers are calling for a class action suit against the banks after new evidence suggests banks are concealing their securitisation activities from customers, the courts and investors, in what could turn out to be the largest banking fraud in South African history.
Scores of South Africans have added their voices to the growing clamour for a class action suit against the banks in response to what may turn out to be the biggest fraud in South African history. This follows publication of research coordinated by Advocate Douglas Shaw suggesting that banks are securitising home loans but hiding this fact from the courts when seeking judgment against customers allegedly in default.
Securitisation is the banks’ practice of bundling loans together and on-selling them investors who buy and sell these assets on the JSE and other stock markets. Once a loan is securitised, the bank loses legal title to the loan.
http://www.acts.co.za/news/blog/2015/03/calls-grow-for-class-action-suits-against-banks-over-securitisation
Auction Alliance paid off bank officials, says report – paying referral commissions to bank officials at Absa, Nedbank, RNB/FNB and Investec.
Auction Alliance
WHILE mandated to market and sell bulk properties on behalf of Absa, Auction Alliance allegedly acquired some of the residential units for itself without disclosing this to the bank.
Auction Alliance is also accused, in the Greyling forensic report that Business Day has seen, of paying referral commissions to bank officials at Absa, Nedbank, RNB/FNB and Investec.
The report is the product of a forensic probe carried out by Allan Greyling and his team at Accountants at Law (A@L) in 2012. It has been buried away from the public eye ever since.
http://www.bdlive.co.za/companies/2016/05/18/auction-alliance-paid-off-bank-officials-says-report