A Gauteng woman is facing deep financial distress after Nedbank moved to recover more than R365,000 on a home loan linked to a property that no longer exists.
Evodia Tshabalala bought a house in the Protea Glen Estate in Soweto in July 2012, financing the purchase through Nedbank. What was meant to be a fresh start soon turned into a nightmare when serious structural defects began appearing shortly after she moved in.
Cracks spread through the walls of the newly built home, raising alarm over its safety. Inspections by regulatory authorities, including the National Home Builders Registration Council (NHBRC), confirmed that the defects were severe. The house was eventually declared uninhabitable and demolished due to structural failure, leaving only vacant land behind.
Despite losing her home, Tshabalala remains responsible for the mortgage. After falling behind on monthly repayments of R4,970, her arrears grew to more than R99,000, prompting Nedbank to approach the South Gauteng High Court in Johannesburg to recover the outstanding debt.
With no house to live in, Tshabalala was forced to rent alternative accommodation while continuing to carry the burden of a bond for a demolished property. The matter was also reported to the Office of the Public Protector.
During pre-hearing discussions, Tshabalala — who was not legally represented — reached a verbal agreement with the bank that gave her four months to resolve the issue. However, acting judge Ntebo Nkoenyane expressed concern that the timeframe was unrealistic given the complexity of the case.
The judge noted that Tshabalala may have valid claims against third parties, including the property developer and builder, and stressed that proper legal advice was essential. She described Tshabalala as a victim of a failed housing project and warned that proceeding too quickly could result in serious injustice.
Judge Nkoenyane proposed that a one-year suspension would be more appropriate, allowing Tshabalala time to seek legal assistance, pursue possible claims, negotiate with the bank, or explore options such as selling the land, restructuring the debt, or approaching consumer protection bodies.
While the court ultimately ruled in Nedbank’s favour by declaring the property executable, the order was suspended for one year. Nedbank was granted a reserve price of R355,000, with interest on the outstanding amount set at 9.40% from September 2025.
The judge emphasised that the suspension does not erase Tshabalala’s financial obligations, but is intended to prevent financial ruin and allow for a fair and balanced resolution for all parties involved.