Noluthando gets to keep her house

Absa has given a homeowner who ­defaulted on

her homeloan ­account a ­second chance.

Noluthando Mqhayi of Ekurhuleni can enjoy the comfort of her home

now that Absa has agreed to cancel the execution sale of her property.


Mqhayi could hardly contain her excitement following a successful

dispute resolution process made possible by ­Hotline.

“I admit I owe the bank a lot of money. Fortunately I am still

employed and can arrange to make repayments. But I still insist that I was not

treated fairly.

“I was not properly advised about the litigation process. However,

from today onwards I will sleep a bit easier and it is all because of Hotline,”

she said.

In 2008 Mqhayi applied for a debt consolidation loan and used her

property as collateral.

But Mqhayi ­defaulted on her homeloan ­account for about four

months, though she insisted that she informed the bank that she could no longer

make regular payments.

She also defaulted on the consolidation loan repayments.

Mqhayi made cash payments in ­respect of her homeloan account at

the end of each month.

During her struggle to pay both ­accounts, she contacted her

employer to apply for a second housing subsidy but her application wasn’t

successful. During that period, Absa began legal ­processes to recover its money

but failed to inform Mqhayi.

In January, a prospective buyer visited Mqhayi’s house to view it

after coming across an advertisement showing that it was being auctioned.

Mqhayi immediately contacted Absa and a consultant explained that a

date for the auction had been set and that she owed the bank R213 477 and a

­further R37 266 in respect of the unpaid debt consolidation loan.

“I argued that I did not receive any ­formal letter from the bank

regarding all this. So I could not understand how they could sell the house

without ­proper ­consultation.

“I made arrangements to settle the debt but Absa demanded more

money.

“And prospective buyers kept coming to my house to view it, which

was ­obviously irritating,” said Mqhayi.

On the day of the auction (January 13 last year) Mqhayi offered to

pay R4 679 but the bank’s legal department ­demanded 20% of arrears plus the

legal costs.

Absa media specialist Deon Oosthuizen said the account had already

been handed over to their lawyers Barnard and Majavu Incorporated for

collection.

Following Hotline’s intervention, a meeting between Absa and Mqhayi

­resolved that the latter make payment ­arrangements.

“She agreed to pay an amount of R3 000 every month. If she defaults

again, Absa will proceed with litigation,” said Oosthuizen.

Mqhayi has since confirmed the ­arrangement in writing.

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