A default occurs when you have not made your loan repayments cumulatively for 3 months (90 days).
The moment you find yourself in a situation where a default is likely to happen please notify GHL immediately.
GHL has the right to foreclose on the loan under the Home Mortgages Finance Act 2008 and in accordance with the loan agreement. Furthermore, until the property is sold, a higher interest rate (Default Interest Rate) is applied to the loan, as is normal in all commercial loan transactions.
This process involves the use of legal means to dispose off the property of a defaulter with proceeds used to pay off the mortgage. There is a refund of excess proceeds, if any, to the defaulter.
When in default you have the following options:

  • Sell the property – With the consent of GHL, the property can be sold to settle your loan with GHL and the remainder of the proceeds refunded to you.
  • Contest the default in Court – The court will rule on your indebtedness and if it is in favor of GHL, the property will be auctioned to settle GHL and the remainder refunded to you.
  • Renegotiate with GHL based on the fact that the default is a temporary situation.
Should renegotiation of loan terms with GHL fail, there are two options open to a client:

  • Sale Option
  • Legal Foreclosure
The ultimate reason for this option is to avoid expensive 3rd party costs and to realize optimum value from the property through a controlled sale.

The following are some of the benefits from the Sale Option:

  • You preserve your share in the property because, under the voluntary sale option, you are able to sell the property at the market value (as opposed to a forced sale value) which is likely to be higher than your total indebtedness and therefore achieve a higher probability of receiving some left over from the sale.
  • You avoid a long period of paying interest at the default rate which erodes the ultimate proceeds that will be paid to you.
  • You avoid legal fees which include 10% Lawyers’ fees, cost of Writs and motions filled in court among others are avoided.
  • You avoid auctioneer’s fees of 7% of the proceeds of the sale of the property when ordered by the court.
The cost of foreclosure, which includes legal fees, auctioneers and court expenses are borne by you. These can be as high as 20% of the proceeds from the sale thereby aggravating the already stressed debt position..

  • You get a fair hearing from the court
  • Because it takes time (on average 18 months), interest at the default rate accrues and therefore erodes your share of the proceeds.
  • Walk in payments: Cheque or cash payments made directly at GHL’s premises. Cash limit of $6,000.
  • Bank deposits: Cheque or cash payments payable into any of our local and offshore accounts.
  • Online Transfers into any of our local and offshore accounts.
  • Post Dated Cheques: Presentable to GHL.
  • Mobile Money: Mobile Money payment to GHL.
  • Money Gram: Transfers to GHL via Money Gram.
  • Standing Order instructions: Made with Bank to debit your account and credit payments to GHL
  • Direct Debit: Mandate given to GHL to deduct payments from clients’ accounts on a monthly basis.
The repayment for a particular month is to be made by the 1st day of the next month. E.g. Repayment for January is due on the 1st of February.
Any payment made after the due date is deemed a late payment
This occurs when a payment is made but does not settle a particular repayment in full.
This is when a payment made exceeds the amount due.
This is an account where any excess payments are kept on a client’s mortgage account.
Refers to a bulk payment made to settle future repayments as and when they fall due. This is kept in the Trust Account.
This is a bulk payment made towards reduction of the principal outstanding or to pay off the loan.
Refers to a notice given towards a principal reduction or pay off. Always refer to your mortgage agreement for your applicable notice period. A charge is applicable if the required notice is not given.