A GAUTENG homeowner's property has been auctioned after the cheque for R65,000 he paid in arrears on the agreed date was mistakenly issued in the bank's name instead of his own.

Though Themba Mbatha paid R65,000 on the morning of the auction the bank will not refund the amount he paid to stop it.

His problem started after he fell into arrears of R64,000.

Compounding the problem was that the bank apparently did not upgrade its systems after Mbatha changed his banking details.

Consumer Line has in its possession an e-mail he sent to the bank asking them to debit his FNB account. He made arrangements to raise and pay the due amount to a home loan manager known as Carven.

The day before the auction, August 4 2010, he contacted Carven, updating him with the details of his efforts to stop the auction.

"I had raised R45000 and I told him that the remaining R19000 was to be deposited in the morning," Mbatha said. He also asked Carven to liaise with the lawyers who were handling the auction to "make them aware that I was going to deposit the money," he said.

"Carven agreed to my request and he told me that I should make the payment before 10am on Saturday," Mbatha said.

But as fate would have it, the bank erroneously issued a cheque in Standard Bank's name instead of his own, causing him to miss his deadline. Mbatha said he was alerted by the bank teller and to ensure he did not lose the house he immediately called Carven.

"The teller was helpful but the bank sold the house," Mbatha said.

He said the teller consulted the service manager, who also advised him to go back to FNB and ask them to write his name on the cheque.

This was done and he later called the lawyer confirming payment as he was advised to do.

Sadly, the bank's attorney told him he was too late to save his house as it was already auctioned.

Mbatha deposited the R65,000 at 10.45am on August 4 but his house had been sold at 10am.

Michelle Marsh, a media relations manager at Standard Bank, said the bank was within its rights to sell the house.

"Between registration of the bond in July 2007 to the time the property was auctioned, Mbatha made eight out of the 35 monthly instalments he was responsible for," she said.

She said the bank made several offers to Mbatha to enter into a mutually acceptable revised payment plan, all of which he failed to honour. Standard Bank subsequently initiated legal action in December 2008, which prompted Mbatha to contact the bank to set up yet another payment structure.

"Mbatha did not honour this new arrangement and so he was notified that the property was to be attached and auctioned off," Marsh said.

Marsh said when payment was not made by 10am on August 4, Standard Bank was unable to stay the sale and the property was auctioned. She said the bank did not take such decisions easily.

"Standard Bank has been accommodating in trying to assist Mbatha to rehabilitate his home loan account, giving him many opportunities to rehabilitate his account.

"If Mr Mbatha remains unhappy, he is welcome to contact the Banking Ombudsman on 0860-800-900."

The Ombudsman has agreed to consider Mbatha's complaint.