There are few things as devastating as losing your home because you cannot pay your debt. But if this cannot be avoided, you’d certainly prefer that your property is sold for the best price possible. Then you can hopefully settle your debts and perhaps have enough money left to start over with. This ideal should now become a stronger possibility for South Africans who struggle to pay back their home loans. A new law, which is due to come into effect shortly, will, for the first time, enable courts to set a "reserve price" (minimum price) at which the residential property of a defaulting owner should be auctioned off. Until now, many South Africans have lost their properties to speculators who snap them up at prices far below market value, but to sell someone’s home for an unreasonably low price is a violation of their constitutional housing and property rights — not to mention the negative impact on their dignity and social well-being. In a paper that looked at a case where a home v...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.