In a landmark ruling, the Durban High Court declared that SA Home Loans (SAHL) unlawfully sold and transferred Valerie Naidoo’s home after she had settled her arrears. Naidoo’s home, valued at R800,000, was sold at auction in 2021 for just R100,000, a transaction the court found to be illegitimate. The case dates back to 2009, when Naidoo first fell into arrears. Despite settling the outstanding amount, SAHL revived an old summons from 2009 when she defaulted again in 2013, leading to the eventual auction.

The court cited the 2016 Constitutional Court ruling in Nkata v FNB, which established that a mortgage agreement is reinstated when arrears are settled, halting any further legal action. The bank, however, proceeded with the sale without issuing a new summons, violating Naidoo’s rights. Acting Judge Harrison declared the 2013 judgment void and the 2021 sale invalid, ordering the Deeds Office to restore Naidoo’s title deed.

SAHL was further directed to reimburse the buyer for transfer costs and cover the buyer’s legal fees, including those related to eviction attempts. The court reprimanded SAHL for treating litigation like a “game show,” exploiting legal technicalities to enforce judgments. Despite losing the case, SAHL has not apologized to Naidoo, a stance criticized by consumer advocates for its disregard of her Constitutional rights.

This ruling reinforces the legal protections for homeowners and criticizes banks’ aggressive foreclosure practices.