Pre-empt possible repossession of your staff’s houses
With timely advice and assistance you can avoid that your staff lose their houses and their life savings. Discuss with your staff what may happen when they are in arears with their instalments and help them to negotiate alternative arrangements.
Evidence that banks sell repossessed houses for cents in the rand
According to an affidavit filed in support of the R60bn class action suit by dispossessed homeowners against major banks Ciaran Ryan 18 Jan 2021 00:01 in Moneyweb reports
It’s been known for years that the banks have been flogging off repossessed properties for a fraction of their market worth, but the evidence was anecdotal and fragmented. Not anymore.
An affidavit filed in support of the R60 billion class action suit brought by Lungelo Ditokelo Human Rights Foundation against the major banks, based on a sample of about 12 000 repossessed properties, found that these properties were sold for 50-60% of their proper value, mainly through sheriff’s auctions. The class action suit, which is being defended by the banks, seeks to recover billions of rands in lost home equity as a result of this practice.
What’s disturbing about this evidence is how far out of line SA is with practices elsewhere in the world.
“Our South African banks sell property about five times more than the international average as a percentage of the total number of outstanding bonds and 20 times more than best practice,” says Garth Zietsman, a statistician who analysed data from the National Credit Regulator.
Spokespersons of the banks responded that they are open to discuss alternative arrangements.