Question:
As a result of an armed robbery I lost all my work and could not pay any creditors. I made an arrangement with them to catch up any payments that are in arrears, but they are now trying to foreclose.

Is there recourse with the Financial Services Board as they are a lending institution? What happens in the case of property repossession?

Answer:
The Financial Services Board is not a lending institution; they regulate collective investment schemes and advisors. The Banking Association of South Africa or the Banking ombudsman (www.obssa.co.za ) oversees banks.

If you feel you are being unfairly treated you can approach the ombudsman for recourse, however from what I can gather the bank is acting within its rights to foreclose on you. They do not do this lightly and it is a path of last resort.

The only way forward is to try and find the money to pay the arrears. This could mean using every resource available to you. Get a part-time job, find a housemate, sell your TV or borrow from friends or family ? seriously, try anything!

It is very difficult to recover from a foreclosure, not only is your credit record ruined but you will not be able to get finance to buy another home for at least five years, even if you can afford it.