UK Finance (uk.finance) Discussion about Finance issues in the UK.

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Old September 6th 03, 09:32 PM posted to uk.finance
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Default House sale falling thru between exchange and completion?

Our buyer has had his mortgage cancelled & seems like he may not be
able to complete on the specified date. I know a lot about our rights
(contract interest rate if completion is delayed, 10 day
notice to complete if we think he won't ever do it, entitled to 10% of
purchase price if he doesn't ever complete).

I just wondered if anybody else had had this happen, and how
some of the logistics work, Assuming buyer can't complete on specified
date and still wants to buy, Would we get 2 hours to vacate the
house if the buyer's soliciter suddenly gets the outstanding balance?
We are moving in with friends, so thankfully don't have another sale
riding on this one. Still, how do we decide when to give up
on buyer and issue notice to complete?
What if buyer doesn't have 10% of the purchase price (his deposit was
much smaller) to pay us in penalties? I know the
buyer can argue exceptional circumstances
to avoid the penalties for failing the contract; is the Halifax
cancelling the mortgage "exceptional"? And so on. Just
like to hear what happened to anybody
else, if this has happened. We're in England, btw.

We are planning to meet with soliciter end of next week (one week
before completion is supposed to happen) to ask questions, but am
trying to grasp it all, the sooner the better.

All complicated by the fact that we have done a private sale,
& our own conveyancing. All that went fine until this weird,
last twist, but it means
we can't ask Estate Agent for advice. Will consult a soliciter
& probably have to instruct him to handle the Transfer or Notice to
Complete, now. Plus buyer lives 4 doors away; his kids play with mine
and I really don't want bad feelings to arise out of this.

thanks! -Julii

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Old September 7th 03, 12:44 PM posted to uk.finance
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Default House sale falling thru between exchange and completion?

In message , Richard Faulkner
writes
In article , Equus grevyi
As an estate agent for 16 years, I have never heard of someone having
their mortgage cancelled after exchange of contracts. In fact, the whole
system collapses if this is a regular possibility.


Sadly, I have know it happen, but only a few times. The first was when
Town & Country B/Soc almost went belly up, and they withdrew loads of
offers. The second was when the lender discovered that the applicant had
lied on the application form, to the extent that if the truth had been
told he wouldnt have got the mortgage. The last time was when the
applicant lost his job after the offer had been made and he owned up to
the lender....

Most offers have a clause allowing the lender to withdraw the offer if
circumstances change.


Have you seen his actual mortgage offer - i.e. did he have an
unconditional one.

What reason is he giving for the Halifax withdrawing his offer?

He or his solicitor should not have exchanged contracts if the mortgage
was not absolutely certain.


Quite right.

--
john boyle
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Old September 7th 03, 04:49 PM posted to uk.finance
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Default House sale falling thru between exchange and completion?

In message , Richard Faulkner
writes

It is also possible that they have merely changed their minds, and are
playing on good nature to avoid penalties. So the OP needs to see the
original mortgage offer, plus the letter declining the mortgage, before
deciding whether to err on the nice side, or go for the Max!


I agree. The CHANCE is that the mortgage offer was never there in the
first place or they've just changed their minds!!!!!!!!
--
john boyle
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Old September 9th 03, 04:47 PM posted to uk.finance
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Default House sale falling thru between exchange and completion?

Thanks for replies.

We did see the buyer's mortgage offer, it all looked kosher.
I believe that he got caught out on income, that he didn't declare
an existing mortgage, that he falsified address, or pretended
it was a residential mortgage when it was actually buy-to-let.

Apparently someone working in the local Halifax was helping
people of a particular ethnic group lie on their mortgage
application forms; he got found out. I heard of a seller
who on Completion day, got a phone
call from her soliciter saying "The sale is off; bank sent the purchase
money over an hour ago but they are demanding it back, now".

Our current buyer even sent around his uncle to offer on the
place yesterday. Current Buyer seems to have
no grasp of the fact that we could sue him for 10% of the purchase price!

We've already had TWO intersted alternative buyers, even though
we haven't advertised in any way (we're in the middle of a particularly
popular ethnic area, and word just seems to spread around their
community). If it means we can avoid going to court, I think we will
try to get Current Buyer to settle for something like 2% of the
buying price as our compensation and resell for more than he was
going to pay us, anyway.

Currently we are hoping we don't have to move out after all; that's the
big question.
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Old September 9th 03, 08:19 PM posted to uk.finance
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Default House sale falling thru between exchange and completion?

In article , Equus grevyi
writes
Thanks for replies.

We did see the buyer's mortgage offer, it all looked kosher.
I believe that he got caught out on income, that he didn't declare
an existing mortgage, that he falsified address, or pretended
it was a residential mortgage when it was actually buy-to-let.

Apparently someone working in the local Halifax was helping
people of a particular ethnic group lie on their mortgage
application forms; he got found out. I heard of a seller
who on Completion day, got a phone
call from her soliciter saying "The sale is off; bank sent the purchase
money over an hour ago but they are demanding it back, now".


Irrespective of what the Halifax representative was doing, this buyer
has commited a fraud, on 4 counts at least, which looks like causing him
to be in breach of one of the strongest contracts in existence.

Has he paid at least a 5% deposit via his solicitor?

If you dont go for your 10%, you will be giving a clear signal to him to
tell his mates to try the same as there is little or nothing to lose.

Our current buyer even sent around his uncle to offer on the
place yesterday. Current Buyer seems to have
no grasp of the fact that we could sue him for 10% of the purchase price!


I think you will find that he is fully aware of the penalty, but playing
dumb, naieve, and neighbourly, often works. How thick skinned can he be
to think you could possibly trust another member of his family.


We've already had TWO intersted alternative buyers, even though
we haven't advertised in any way (we're in the middle of a particularly
popular ethnic area, and word just seems to spread around their
community). If it means we can avoid going to court, I think we will
try to get Current Buyer to settle for something like 2% of the
buying price as our compensation and resell for more than he was
going to pay us, anyway.


His tactic is working - you are being too soft. Have you used an estate
agent - if so, their fee is almost certainly due upon an exchange of
contracts, and part of the 10% is often used to pay this.

Currently we are hoping we don't have to move out after all; that's the
big question.




--
Richard Faulkner


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