KAMRIA VS GMAC [ early settlement fees ]

[KAMRIA]

HI TO ALL FIRST TIME ON,AND HAVE A PROBLEM---BIT OF BACKGROUND FIRST.Took out a mortgage with GMAC in october 05,it was a remortgage to reless funds for a business venture--cut a long story short the business i bought was based on as we have now found out on fraudulant figures [ which is going through the courts]also as the previous owners have also taken the client business back by undermean hands[also going through the courts as the contracts signed have been breached--all this has led to the business having to close and being £250,000 down on the awfull experiance.

Back to the point,gmac have applied to the courts for reposession this month as the mortgage arreas are now 5 months old.On the original contract there is a clause that states early redemption fee is payable within the first 2 years of the mortgage,which if repossesd before this october 07 is payable.the sum being £24,000 in penalties.Which seems very high as the situation has been out of my control.I suppose I could ask the courts to delay repossesion untill this october.[but cant see that happenning ]as then the total debt including all arreas would be less as the redemtion early release would have ended by then.-help

[Bona]

Surley if they are repossessing they cant charge you for breaching the agreement to reedeem whos there solicitor

Bona

[mrsfoot]

Why dont you go to court with an offer to repay arrears??

[kerryanna2]

Hi Kamira & All,

 

I am currently considering taking action against GMAC also as I had a residential mortgage with them which also stated the similar terms on a ERC 5% wihtin the 1st 2 years should I redeem early.

 

Here's my story:

 

My circumstances changed dramatically and I left the property with my daughter for a number of personal reasons and am now on my own. I requested their permission to let the property to which they agreed but sadly I got a bad apple of a tenant who didnt pay etc, etc. I then found a deal with the local authority, guarenteed rental income 52 weeks of the year (slightly lower than market rental) for a contract of 3 years and i thought great they wanted the property and I wanted the deal. i spoke to GMAC regarding this and they said that they would only allow me to let to professionals even though i assured them i could provide them with a confirmation of the offer made by the local authority, I still dont understand although they say their reasoning is that renting to a local authority is too high risk and the rental would have been lower. i then explained that although the rental via local authoirty would have been slightly lower (approx 50GBP PCM) I didnt have to pay out a £160 PCM management fee to an estate agent therefor i would be considerably better off but they still declined. The local authority required proof from the mortgage lender they they permitted the 3 year plan, I had to remortgage with another company who permitted such lets. In order to do this I am now subject to just under 5k in erc and charges. I would have stayed with them but could not take the risk of having another bad apple of a tenant which would have resulted in me missing payments etc, or possible not being able to find a tenant.

 

I am really not sure if I have any recourse but I feel I have been unfairly penalised due to a change in my circumstance leaving me 2 choices - get fined by GMAC in order to leave or to take a risk and possibly end up having the property reposessed due to no guarentee of rental income via the professional route eventually ending up worse off.

 

Can anyone advise if I have a leg to stand on?

 

Cheers,

 

K.

[Bona]

First get everything in writeing if you can, ask them if they agree to you renting it out, and if not why not have you got there agreement in writing for the first time . When you have that ask them again if you can do a three year deal if they say no get it in writing and ask them to waive the erc if the wont tell them if they try to repossess you will show all the correspondence to the judge as you beleive they are being unreasonable see what that does but dont let them know what you are going to do just take it step buy step and if you have a telephone call follow it up with a letter outlining what was agreed

Bona

[kerryanna2]

Hi Bona,

 

Thanks for your message.

 

The problem is i had a deadline with the local authority to accept the deal and i really need the peace of mind the contract had to be active by the 01/03/07, so i have already proceeded and completed on the remortgage with another company on Wed. Does it mean I dont really have a case now plus silly I know but everything was done by phone although i could still write to them asking them to explain their reasoning...? What do you think? Looking back i can see just how careless I have been mainly due to personal probs but hey maybe things are on the up

 

K.