mortgage safety

123sellblue

My Dad has a mortgage with a company called GMAC which is apparently an American company. I don't know much about them. I am worried, having looked on the net, that his home may be at risk because this company is not British and if it goes under it won't be nationalised. Does anyone have any knowledge of this company and /or how safe it is or is not or if it is right that they are selling off their mortgages? if they are will he be informed before or after they are sold?PA

opinions4u

Faily sure GMAC is part of the car maker General Motors (Vauxhall in the UK). Huge company.

If they go under, Dad should keep paying his mortgage - he can't lose his home if he does.

The debt would probably be sold on to a new lender.

In a really weird world where no new lender would buy the debt and no government would nationalise it, then Dad would have a mortgage free property! But that, unfortunately, won't happen!

BYALPHAINDIA

123sellblue wrote: »

My Dad has a mortgage with a company called GMAC which is apparently an American company. I don't know much about them. I am worried, having looked on the net, that his home may be at risk because this company is not British and if it goes under it won't be nationalised. Does anyone have any knowledge of this company and /or how safe it is or is not or if it is right that they are selling off their mortgages? if they are will he be informed before or after they are sold?PA

I wouldn't worry to much about - what If???

If any company goes under, Then your home is still safe, Even if in the hands of the administrators.

GMAC is an american co but has 2 offices in britain.

I think people are getting 'Paronoid' about the economical climate.

The reason the Halifax & the B&B went under was that they were C**P basicly.

They were'nt organised or mature enough to survive.

I know I used to work at the B&B years ago and they were just as .... then.

Best Of Luck.;)

koexelek

GMAC have ALWAYS tried to sell on their mortgages.

They are part of a huge company, and should be sound though.

In the past, they arranged mortgages for clients which some lenders would have deemed too high a risk to sanction themselves personally( for example, self cert up to 95%). However, these other lenders were happy to buy the mortgages off of GMAC as soon as they were up and running.
In laymans terms, GMAC did the " dirty work" for them
Mortgage Express bought a lot of them.

The problem GMAC have now, is that most of the time they can't sell on the mortgages. They should be fine to honour the deals themselves though.

Husband_of_a_spendaholic

koexelek wrote: »

GMAC have ALWAYS tried to sell on their mortgages.

They are part of a huge company, and should be sound though.

In the past, they arranged mortgages for clients which some lenders would have deemed too high a risk to sanction themselves personally( for example, self cert up to 95%). However, these other lenders were happy to buy the mortgages off of GMAC as soon as they were up and running.
In laymans terms, GMAC did the " dirty work" for them
Mortgage Express bought a lot of them.

The problem GMAC have now, is that most of the time they can't sell on the mortgages. They should be fine to honour the deals themselves though.

And the GMAC loans that Mortgage Express bought are one of the reasons B&B found itself in trouble. On the portfolio it originated itself, arrears were 1.5%, but exceeded 5% on the loans acquired from GMAC