We were behind with our bond and just discovered that it was sold on an auction. The bank didn't even inform us about this we just saw it being advertised in our local newspaper. Is this legal? An estate agent bought it and now they selling it for R239 000. From: Elin
A home loan is a secured loan - the security is the property which the bank is the owner of until the bond is repaid. When there is a default on the loan agreement i.e. no payments being received the bank has legal recourse through selling the property to "pay back" the loan. The bank has to follow certain procedures prior to selling the property - such as requesting payment or making arrangement for payment.
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