Key Points
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Patricia Mzamo’s home sold for R5,000 at auction.
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She still owes over R1 million on the bond.
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Calls for policy review on sale in execution processes
Patricia Mzamo, a single mother of four, suffered a major loss when she lost her Randburg home in a public auction. The property sold for only R5,000. This shocking event followed years of financial struggle.
Mzamo had fallen behind on her bond repayments. Over four years, she engaged in legal battles and attempted to settle her debt with SA Home Loans. Despite her efforts, she could not stop the auction.
Her outstanding bond balance stood at more than R1 million. The arrears alone totaled over R582,000. Although SA Home Loans had once been willing to accept R100,000 to cancel the auction, she couldn’t raise the amount in time.
She expressed her disbelief at the final outcome. “How could my home be sold for R5,000 while I still owe over a million?” Mzamo said. She described the situation as heartbreaking and unfair.
Legal auction practices raise concerns among experts
The sale of Mzamo’s property has sparked a broader debate. Legal experts and community advocates are now questioning the fairness of the sale in execution process.
Chandika Chaithoo, an attorney representing SA Home Loans, explained their position. She said the lender only resorts to sale in execution after all other efforts to help the borrower fail.
She added that buyers at such auctions must cover other costs too. These include rates, levies, utilities, and property transfer fees. However, critics argue that these details do not justify selling homes at prices far below market value.
The Gauteng High Court has also warned against rushing forced sales. It reminded lenders of Rule 46A. The rule requires courts to ensure proper notification, set a fair reserve price, and maintain judicial oversight.
Call for reform in sale in execution process
Mzamo’s case is not isolated. Many homeowners across South Africa risk losing properties for far less than their market value.
Experts believe the current system lacks fairness. They argue that it can leave families without homes and still burdened with debt.
Now, there is a growing push for reform. Advocates want the law to provide better protection. They call for clear minimum prices, proper court procedures, and more opportunities for debt relief.
In conclusion, the sale in execution process urgently needs attention. Without fair and transparent practices, more families could face the same fate as Patricia Mzamo.
