Saturday, 22 September

Where’s My Apartment? Glendale Hills Turns Buyer into a Bad Credit Risk



In 2008, Arevik Gasparyan signed a contract with Glendale Hills CJSC.

The housing construction company was obligated to get her a 39 square meter apartment, at a market value of around 10 million AMD (US$24,185), by November 30, 2011.

The apartment was to be located in the company’s “Yerevanian Berd II” Block 15 building, located adjacent to Yerevan’s “Ararat Wine, Vodka and Cognac Factory”.

The deadline came and went and Gasparyan never took possession of the apartment.

In fact, Gasparyan told Hetq that Building 15 has never been built.

Gasparyan also told Hetq that she and Glendale Hills had modified the contract to get an apartment in the same Building 15 quicker.

“In 2013, we signed a contract modifying and amending the preliminary buy and sell contract. With this new contract the size of the apartment would increase to 48.7 square meters at an estimated value of 15 million AMD. The new changes obligated the company to get us this apartment by November 30 of 2013. To date, we haven’t received it and the company hasn’t explained why the building hasn’t opened its doors,” Gasparyan recounted to Hetq.

Despite this, Gasparyan signed a US$36,957 30 year mortgage with VTB-Hayastan Bank at the suggestion of Glendale Hills.

“Before taking possession of the apartment I was naive enough to sign the mortgage. We are paying the monthly principal and Glendale Hills is paying the interest until we get the apartment. But they having only been paying every three or four months and the debts are adding up. I’ve been blacklisted by the creditors. I constantly receive payment letters from the court. They’ve garnished my wages. I’m stressed out every four to five months until it’s removed. Right now, it’s the same story,” Gasparyan says.

Gasparyan received a notice from the Compulsory Enforcement Service on October 13 that they would again take action.

“Every month I pay $154. Glendale Hills failed to pay $350. The company says it doesn’t have the money. The mortgage is in my name and I’m accountable to the bank. Glendale Hills is shirking its obligations without any good reason. I even have a written statement from the company saying that it’s been late in paying the interest. But the bank couldn’t care less. And I can’t get a bank overdraft because I’m regarded as a bad credit risk,” says Gasparyan, adding that she has to yell over the phone to get Glendale Hills to pay at least something.

On October 9 Glendale Hills issued a letter to Gasparyan claiming that the company had paid all the outstanding interest debts.

A guarantor contract was signed between Glendale Hills and the bank by which the construction company was equally responsible for making all mortgage payments.

Gasparyan’s credit history had gotten so bad that on May 14, VTB-Hayastan Bank took her and Glendale Hills to court demanding payment of $36,361 and 8,995 AMD.

By not paying the principal and interest on time, interest and penalties kicked in for every day past the payment deadline (0.2% in interest and 0.3% in penalties).

The bank and Glendale Hills settled out of court on August 29.

“I no longer believe that I will ever get that apartment. I got a letter from the bank last month instructing me to pay the entire $36,000 all at once since I had become an irresponsible debtor. I’m now waiting for yet another letter, this time from the CES, obligating me to pay or else,” Gasparyan says.

Hetq contacted Glendale Hills regarding Gasparyan’s predicament but were told that the company doesn’t disclose company-client information to third parties.

Photo: Glendale Hills website


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Comments (1)
1. Varouj17:20 - 8 November, 2014
This is very unfortunate. Hetq has done a good job of covering this news in a balanced manner.
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