Standard's foreclosure attempt over Vavi's home fails

Standard Bank has failed in its attempt to obtain authorisation for the foreclosure of a mortgage bond it granted over the Sandton primary residence of South African Federation of Trade Unions general secretary Zwelinzima Vavi and his wife Noluthando.

- Roy Cokayne Moneyweb

The judgment highlighted the high legal costs that result from mortgage bond arrears and foreclosure, with the bank claiming more than R160 000 in legal costs from the couple.

The amount is twice the value of the couple's current mortgage bond repayment arrears.

Judge Stuart Wilson said Standard Bank had placed nothing before him explaining why execution against the Vavis' home is a proportionate means of recovering the arrears.

He postponed the application brought by the bank indefinitely and ordered that each party pay its own costs.

Wilson said a court asked to authorise foreclosure against a debtor's primary residence must be satisfied that to do so would be proportionate.

The judge said foreclosure was generally proportionate when there was 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 outweighed the interest of the debtor in retaining ownership of the home.