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MEC for Human Settlements assists struggling home loan defaulters in Nelson Mandela Metro

APRIL 13, 2016
MEC for Human Settlements assists struggling home loan defaulters in Nelson Mandela Metro

Eastern Cape MEC for Human Settlements, Helen Sauls-August has announced that R42 million has been set aside to help home loan defaulters in Motherwell and Uitenhage, in the Nelson Mandela Bay.

The money will go into buying 379 houses categorised as the Property in Possession (PIPs), from Hlano Financial Services who are the title holders of the properties.

The properties will then be transferred into the names of the beneficiaries who have been occupants for over twenty years without owning the houses.

Today the first batch of beneficiaries, 97 beneficiaries thus far, received their title deeds as confirmation of homeownership and security of tenure. The remaining number of title deeds will be processed during the course of the year.

“These owners will not be removed or be threatened with eviction again. These are their houses and can now relax knowing that none can take their houses away,” MEC Helen Saul-August said at the handover of title deeds in Motherwell today.

In 2014, the Department was inundated with complaints from Hlano Financial Services about home loan defaulters and occupants of PIPs residing in the Motherwell and Kwanobuhle areas.

At this stage Hlano was aggressively pursuing the collection of outstanding bond repayments and the sale of PIPs which would have resulted in the displacement of many families. Some of the beneficiaries include the elderly and the disabled.

“The department settled the debt with Hlano Financial Services in order to prevent eviction of beneficiaries from their homes,” MEC Sauls-August said.

She acknowledged the critical role played by the municipality by writing off the municipal rates debt amounting to millions of rands so that properties can be transferred to the owners.