On Monday, Sowetan published a story of an aggrieved Old Mutual client titled: "Father fights Old Mutual over his auctioned house".

Old Mutual has since responded, saying Sello Nthite's house was sold lawfully. A letter approving Nthite's second loan was mistakenly sent to him, the financial giant said.

Old Mutual said the letter, sent to him in November 2007, in which the insurer was pleased to tell him that his loan application of R139797 had been approved, was all a mistake.

Nthite had complained to Consumer Line that Old Mutual sold his house illegally following a second loan he claims he did not apply for.

Communication sent to Nthite from July 2004 to October 2006, which Consumer Line has seen, shows there are two loans. However Shirley Smith, Old Mutual Finance chief operating officer, said Nthite defaulted on his bond since 2004.

She said Old Mutual's letter dated November 3 2007 was incorrectly sent to him as a loan application status advice.

She said the amount mentioned in the letter was in fact the converted balance of Nthite's mortgage which was brought forward from the previous mortgage loan system.

Smith said Nthite and his wife applied for a mortgage loan, which was approved on May 11 2000. His first default on the loan happened on June 30 2004, prior to the system migration. She said a letter of demand was sent to the clients in December 2004 as well as in January 2005.

Legal action started in February 2005. Though a sale in execution was scheduled for September 22 the same year, it was subsequently cancelled due to arrangements and payment, Smith said.

She said three more sales in execution were again cancelled due to further arrangements and payments.

"We reiterate that this was the last resort in a long process that has spanned nearly two decades, with due consideration being given to try and turn the situation around at various points throughout the process," Smith said.

She said during 2014 and beyond, Nthite began to make irregular payments towards the outstanding mortgage loan, which resulted in the accumulation of arrears.

In September 2016, Old Mutual Finance duly instructed its legal representatives to proceed with the sale in execution as a result of arrears and nonpayment by Nthite.

A final sale in execution took place on October 26 2017 as Nthite failed to meet his arrangements, said Smith.

"No further payments have been made by Nthite."

However, Nthite said if Old Mutual had thoroughly explained this instead of penning out the migration as a second loan, the sale in execution would have been avoided.

Nthite said he resisted to pay because Old Mutual sent him a letter approving a second loan he did not know about and continued sending him letters as if he had two loans.

"This was misleading and they should have corrected this a long time ago," said Nthite.