Retired footballer Teko Modise is about to be booted from his multimillion-rand Joburg home by SB Guarantee Company for allegedly dribbling it of its bond repayments.
Modise, whose credit profile was negatively affected when he lost his houses and cars due to non-payment about five years ago, entered into an agreement with the guarantor in March 2015 to secure a home loan for him.
According to court documents filed by the guarantor’s lawyers, Shepstone & Wylie, they provided a guarantee for the former Bafana Bafana star to be granted a loan of more than R2.7m by Standard Bank to purchase a house in Fourways, north of Joburg in October 2016.
The company paid Standard Bank R690,000 as security for the home loan.
As a result, the loan given to the former Orlando Pirates and Mamelodi Sundowns ballooned to more than R3.3m. He was supposed to pay R32,000 in monthly installments over 240 months but allegedly defaulted.
The court papers show that as at May 24 this year, Modise was more than R529,000 in arrears after allegedly defaulting for 14 months. The guarantor’s lawyers wrote a letter to the former PSL player of the year on October 8 last year demanding that he get his account up to date, but their pleas fell on deaf ears.
The papers showed that Modise, via his attorneys, attempted to arrange payment agreements on more than five occasions.
“The defendant, in breach of the terms and conditions of the loan agreement … has failed to pay the monthly instalment due in terms thereof, which breach was material. Not withstanding the default notice, the defendant has failed and/or refused and/or neglected to make payment of the amount as set out in the plaintiff’s demand, and the plaintiff is accordingly entitled to claim the total of all amounts owing by the defendant to the plaintiff.
“The defendant is presently indebted to the bank under the loan agreement, and therefore to the plaintiff under the indemnity, in the amount of R3,335,315.68, being the balance of the total principal debt, together with interests at the rate of 12.6% per annum from 24 May 2019 to date of payment …” read the papers.
The company asked the court to grant it an order declaring Modise’s house executable and issue a writ of execution to attach and auction it off.
“That a reserve price be set for the sale of the property at a sale in execution, at a value to be determined by the honourable court,” read the papers.
The papers also show that Modise failed to pay rates and taxes on the property and was more than R62,000 in arrears. He owed the body corporate more than R51,000 in levies.
Standard Bank spokesperson Ross Linstrom declined to comment and said the matter was sub judice.
“Since the litigation process is under way, it will not be appropriate to comment at this stage,” he said.
Modise could not be reached for comment.
– Sunday World