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The Constitutional Court’s decision to dismiss an application to access the court by defaulting debtors who cannot meet their home loan payments does not help to alleviate unscrupulous behaviour by resellers, according to a legal commentator. The application was brought by 219 complainants who were applying to the Constitutional Court for direct access to have the current home repossession procedure declared unconstitutional and to claim damages from home loan providers for allowing their houses to be sold at sheriffs’ auctions for less than market value. The application to allow for direct access was denied, the consequence of which is that the litigants will need to approach the usual courts of first instance such as magistrate’s and high courts. Gilad Cohen, an attorney who practises in Johannesburg, said the home repossessions system was prejudicial against homeowners. "In my assessment, the prevailing system for foreclosing on mortgage bonds of defaulting debtors has created a ...

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