People & News

Banks can attach

The Appeal Court has ruled that banks may attach and sell homes to recover debts in a unanimous ruling by five appeal court judges who pronounced this to be a test case. Many months of confusion and legal uncertainty have thus ended. The inquiry into the home owner's constitutional right to adequate housing relates only to the poorest of the poor and does not apply to normal mortgage bonds.

After all, "why can't owners of expensive homes not simply move into cheaper homes if they are unable to keep up their mortgage payments?" asked the judges. A mortgage bond is a contract and banks can still apply for rulings against defaulters of mortgage bonds, just as they have done for many decades past.

Article on Property 24

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