Prescribed debt is debt that ceases to exist after there has been no activity or any real attempt from the credit provider to contact you over a certain period of time. Most debt prescribes after three years if there has been no payment or acknowledgment of the debt. Once the debt becomes prescribed, the customer is not obligated to make any payments on it, ever again. However, prescribed debt for home loans take a longer process.

Debt accumulated on a mortgage bond will only prescribe after 30 years. Meaning that your home loan will still be payable, and any interest and penalty fees will have to be paid to your credit provider.

Failure to pay your home loan could result in a foreclosure. In 2015, an estimated amount of 10 000 homes were repossessed and sold on auction around South Africa. Most of these homes were sold at only a fraction of the cost, leaving struggling homeowners out of pocket. However, it is important to understand your rights as a homeowner, and know that you can only be evicted from a house that had been sold on auction when the property has been transferred to a new owner. If someone is evicted from their home before a transfer has taken place, it is illegal.