Former Orlando Pirates striker Mpho Makola is on the cusp of losing his R1.5 million house in Joburg after failing to pay back the loan he obtained from SB Guarantee Company.
The heart-breaking news came to the fore when SB Guarantee Company this week filed papers in the Joburg High Court in which it’s seeking a default judgment and an order to attach and sell Makola‘s posh crib in Buccleuch, north of Joburg.
The company, which is a subsidiary of Standard Bank, has given Makola a period of 10 days to indicate if he will oppose the application of the order.
In the papers which we have seen, SB Guarantee Company said it had advanced a loan of over R1.3 million to Makola on September 27 2016 and the soccer star used his house as surety to repay the loan with interests.
The company also advanced a loan of R280 000 to the former Free State Stars footie on April 6 2018 as a home loan and this ballooned his debt to over R1.6 million.
“The applicant relies on monies lent and advanced by the applicant to the respondent and a mortgage bond registered as continuing covering security for the monies actually lent and advanced by the applicant to the respondent.
“The respondent also executed a written indemnity agreement in favour of the applicant. Pursuant to the bank and respondent concluding a home loan agreement and the respondent executing the indemnity, the applicant furnished the bank with a written guarantee, in terms of which the applicant guaranteed the due and punctual payment of all sums which were then and which may be subsequently become due by the defendant to the bank , pursuant to the loan agreement,” read the papers.
SB Guarantee said Makola was supposed to repay the loan in over R17000 monthly instalments for a period of 240 months but defaulted on his payment and was over R183 000 in arrears as of last month.
“As at July 2022 the arrear amount owed by the respondent to the applicant have escalated to the amount of R 183 233.90 which amounts to approximately 10 months of missed instalments,” read the papers.
Following Makola’s failure to pay the arrears , the company said it had no choice but to approach the court to obtain a court order to declare his property executable.
This after company‘s call agents phoned him and pleaded with him, without success, to settle the arrears and keep his account up to date.
SB Guarantee Company’s lawyers also issued summons against him on February 22 this year in a bid to force him to settle the arrears but their efforts too emerged fruitless as he failed to remit the payment.
“From the aforesaid, one would realize that since issuing of summons, the arrears as well as the outstanding debt has not been paid.
The applicant also requests, as already stated supra, an order declaring the immovable property specially executable as well as an order that the applicant/registrar be authorized to issue a writ of execution against the immovable property. The applicant applies to the honourable court for adjudication of the monetary relief as well as executability of the immovable property. The respondent has failed to make regular payments in terms of the loan agreement and bond referred to supra, wherefore the amount and interest have become due and payable to the applicant,” read the papers.
SB Gurantee Company said the market value of Makola’s house is over R1.5 million and has asked the court to set a reasonable reserve price for it.
“With regards of the setting of a reserve price, it is evident from the papers that the market value of the immovable property is R1560 000, the forced sale value is R 1250 000, and the local authority valuation is R 1697 000.
The outstanding rates and taxes owed is the amount of R 80 252.93 .It is submitted that a reasonable reserve price in the circumstances would be the proposed amount of R 1 169 747.07 ,” read the papers.
Makola couldn’t be reached at the time of publishing.
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