What should he expect?
A: Should you receive a section 129 notice, this is the final step before the legal process begins. It will inform you that you are in arrears for a certain amount at a given date.
This notice is issued in terms of section 129 of the National Credit Act. See this as
to take action and prevent your creditors from taking legal action. Avoid delays at this stage as you have only 10 days to apply for debt review.
This is the process whereby a debt counsellor assesses your outstanding debt and implements a restructured debt repayment plan. If this process fails, the bank can ask its legal team to get a summons from the high court or magistrate’s court. This is delivered by a sheriff.
The bank then has to formally apply to court for the right to auction your property. A judge must check that legal and fair processes have been followed, taking into consideration whether this is the primary residence of the debtor, as well as alternative ways of settling the judgment debt.
Banks must show evidence of the property’s market value, the amount owing on the bond and rates and taxes. It is worthwhile checking that this information is all correct. If the sale has to go ahead, the money goes towards covering the outstanding amount on the loan and costs.
Whatever remains will be paid to you. You can only be evicted from a house sold on auction when the property has been transferred to a new owner. You cannot be evicted before a transfer has taken place.
– Sarah Nicholson, commercial manager at JustMoney