Are the systems that are in place for persons to acquire a mortgage really there to assist or frustrate them?

Sep 15, 2022 Letters

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Dear Editor,

I am penning this letter out of pure frustration with the systems that are in place for persons to acquire a mortgage in Guyana. I acquired a house lot from Central Housing and Planning Authority (CH&PA) on the 4^th February, 2015 in the Zeeburg/De Williem Housing Scheme, however I received the Agreement of Sale for the said house lot until the 13^th June, 2018. I decided to approach several banks in order to secure a mortgage, but was told that in order to access a mortgage, the bank will have to get a Letter of Assurance (LOA) from CH&PA along with the Agreement of Sale that was issued. I visited CH&PA to enquire about the issuing of Letter of Assurances but was told that there were some legal issues that had to be sorted between GUYSUCO and CH&PA since the housing scheme previously belonged to GUYSUCO and CH&PA did not receive full ownership of the scheme. Therefore, they cannot issue no document concerning the scheme as yet. After numerous visits to CH&PA, I was finally informed in December of 2021 that the issue between GUYSUCO and CH&PA was resolved and that I can apply for my mortgage because CH&PA can now issue Letter of Assurances. After waiting for six years, I thought the long wait was finally over and I now start the process of acquiring my dream of owning my own home.

I approached The New Building Society Limited (NBS) to start the process of applying for a mortgage and I was given the list of required documents which are needed. It took me more than two months to gather all the necessary documents because I had to wait on the building plan to be approved by the NDC before I can submit same to the bank. After my submission, I was contacted by an officer from NBS informing me that my Agreement of Sale is indicating that I have an outstanding balance for the house lot. I explained that I benefitted from the Golden Jubilee Promotion which CH&PA had in 2016, allowing persons to receive 50% discount on their remaining balance if they cleared their balances by a certain time. I was further informed by the officer from NBS that I should get a letter from CH&PA indicating that I benefitted from the promotion and that my house lot was paid for in full. It took more than a month for me to be issued with a document indicating that I was a beneficiary of the promotion and that I have no outstanding balances with CH&PA. During that period, I made weekly visits to enquire about status of the document. I received the letter on the 9^th June, 2022 and took it into NBS.

My loan was approved on the 22^nd June, 2022 and a request for a Letter of Assurance was prepared and dispatched by NBS to CH&PA on the 6^th July, 2022. Again, I thought that I was closer to owning my home but I had to make weekly visits to CH&PA to enquire about the progress of the LOA. On one occasion, I was informed that all the persons responsible for preparing the Letter of Assurance were busy with Building Expo 2022 and that I should check back after the expo. After the expo, my visits to CH&PA were weekly again. I was informed by a staff at CH&PA that a LOA was prepared and sent over to NBS but it had some inaccuracies and was returned by NBS to be corrected. On another occasion, I was informed that the LOA was corrected and sent over back to NBS but it had another issue which had to be rectified. I was finally informed that the LOA was corrected and sent over to NBS. This time, I thought that it was just the legal aspect which has to be completed and I will be issued with my loan to start building. But again, that was not the case. I was informed that there was an error on my Agreement of Sale and it had to be sent over to CH&PA to be rectified. It has been more than two weeks now since I have been in constant contact with both entities trying to track the progress but was unable to do so. NBS indicated that they already sent my documents to CH&PA to be corrected but CH&PA indicated that they haven’t received anything.

I have been patient enough with this process, hoping that it will be resolved soon, but with this new twist, I am on the verge of losing hope with this process. I am starting to think that maybe, just maybe this process is not for the ordinary citizens of this country who are grappling with the high cost of living and a mortgage is the only option available to them to assist them in owning their own homes. Building materials are continuing to skyrocket. Who will compensate me for the additional expense which I will incur because of this delay? I am tired of this ‘blame game’ between CH&PA and NBS. A lot of development is already taking place in terms of infrastructure, but in order for a country to develop and attract investors, isn’t it necessary for the systems to be improved as well? In an age of technological advancement, I really think there should be better communication and faster interaction among CH&PA and lending institutions such an NBS so as to reduce the time it takes for persons to acquire a mortgage and start building their homes. I have listened to many of the flowery speeches delivered during the different ‘Dream Realised’ events giving hope to allottees, but here I am waiting seven long years after for my dream to be realised.

Yours truly,

1. Bhuwan

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