The Gauteng High Court in Johannesburg has ruled against Standard Bank in Zwelinzima Vavi and his wife Norma’s foreclosure case. The court rejected an application by Standard Bank to authorise the foreclosure of a mortgage bond it granted over the primary residence of the South African Federation.
Vavi and his wife owe around R1.68 million on their bond. Their arrears were accumulated around three years ago, and since then, they have serviced their bond, while taking steps to reduce their arrears from just under R170,000 when the application was instituted to around R85,000 today. Their debt comes from a mortgage bond passed over the property, which is an upmarket residence in the north of Johannesburg.
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Standard Bank is reported to have asked for a money judgment and leave to execute it against the residence. Judge Stuart Wilson noted that a court asked to authorise the foreclosure against a debtor’s primary residence must be satisfied that to do so would be proportionate. “Foreclosure is generally proportionate when there is little meaningful prospect of the debt secured against the residence being recovered in some other way, and when the interest of the creditor in obtaining payment outweighs the interest of the debtor in retaining ownership of their home,” he explained.
Bongi Sikelo 