Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Sale Agreed on Negative Equity House

Options
  • 29-09-2012 9:03am
    #1
    keithdelahunty
    Registered Users Posts: 168 ✭✭


    Just wondering if anyone out there has experience dealing with situation I discover I am in. Went Sale agreed on first family home 6 weeks ago in Dublin and started the whole process, mortgage, insurance etc. I have now discovered that the couple I am buying off are in serious negative equity on the house and their bank are holding up process by not releasing the deeds to the house.

    I am starting to get nervous and just want to sign contract and get a move in date. We had previously been told and have it stated in sale agreed letter from estate agent that closing date would be next week. My solicitor is now telling me it could be another 6-8 weeks if we are lucky

    Would appreciate any advice from people who have dealt with purchase of house from counter-parties in negative equity
    Tagged:


Comments

  • Options
    #2
    Bigcheeze
    Closed Accounts Posts: 2,858 ✭✭✭Bigcheeze


    keithdelahunty wrote: »
    Just wondering if anyone out there has experience dealing with situation I discover I am in. Went Sale agreed on first family home 6 weeks ago in Dublin and started the whole process, mortgage, insurance etc. I have now discovered that the couple I am buying off are in serious negative equity on the house and their bank are holding up process by not releasing the deeds to the house.

    I am starting to get nervous and just want to sign contract and get a move in date. We had previously been told and have it stated in sale agreed letter from estate agent that closing date would be next week. My solicitor is now telling me it could be another 6-8 weeks if we are lucky

    Would appreciate any advice from people who have dealt with purchase of house from counter-parties in negative equity

    If the other side went into this without agreement from the bank on how the existing mortgage would be dealt with I would say this sale is unlikely to happen.


  • Options
    #3
    Cushie Butterfield
    Registered Users Posts: 1,861 ✭✭✭Cushie Butterfield


    keithdelahunty wrote: »
    My solicitor is now telling me it could be another 6-8 weeks if we are lucky
    You should ask your solicitor to clarify exactly what he means by this statement.

    He may be aware of alternative arrangements in progress by the buyers to come up with the surplus funds that they need to pay off their existing mortgage, or if they are somehow involved in debt writedown or tradedown negotiations with their current lender that haven't quite been finalised.

    It's hard to say really, but as Bigcheeze says this sale could be unlikely to happen if the buyers have no existing or pending agreement with their lender.

    Going by what your solicitor has said there must be something in the pipeline for them, otherwise he would surely have told you that it's not going to happen. Ask him to clarify the exact situation in as far as he can.


  • Options
    #4
    Achosa
    Registered Users Posts: 9 ✭Achosa


    We paid booking deposit on 20th June. Got contracts last Thursday after more than 3 months waiting. Closing date 12th Oct.
    It can take ages! Nerve wracking experience.


  • Options
    #5
    dufferlover
    Registered Users Posts: 140 ✭✭dufferlover


    Same thing happened us this year. The sellers agreed nothing with the bank and couldn't sell it so we lost the house.


  • Options
    #6
    the culture of deference
    Banned (with Prison Access) Posts: 2,196 ✭✭✭the culture of deference


    Tell your solicitor that they have 2 weeks to complete otherwise you will walk. Find the solicitor of the seller and phone them and tell that they have 2 weeks to complete, be sure to phone them every day for that 2 weeks to ascertain how things are moving.


  • Advertisement
  • Options
    #7
    Bigcheeze
    Closed Accounts Posts: 2,858 ✭✭✭Bigcheeze


    the culture of deference wrote: »
    Tell your solicitor that they have 2 weeks to complete otherwise you will walk. Find the solicitor of the seller and phone them and tell that they have 2 weeks to complete, be sure to phone them every day for that 2 weeks to ascertain how things are moving.

    You seem to think the sellers have control of the process.


  • Options
    #8
    djimi
    Registered Users Posts: 13,238 ✭✭✭✭djimi


    the culture of deference wrote: »
    Tell your solicitor that they have 2 weeks to complete otherwise you will walk. Find the solicitor of the seller and phone them and tell that they have 2 weeks to complete, be sure to phone them every day for that 2 weeks to ascertain how things are moving.

    Its the bank that is holding up the sale and Im not sure that they will care too much if the buyer is imposing a deadline...

    I would suggest that the OP needs to get onto the seller and get them to level with you about where they stand with the bank. If the bank have flat out said no then you are as well to know that now, rather than holding on while the seller fights a battle that they might not win. Them stringing you along is not fair on you, and if they havent thought about the NA situation until the bank stepped in to block the sale after it went sale agreed then they may well not be on top of things or have a clue what they are at.


  • Options
    #9
    the culture of deference
    Banned (with Prison Access) Posts: 2,196 ✭✭✭the culture of deference


    keithdelahunty wrote: »
    I have now discovered that the couple I am buying off are in serious negative equity on the house and their bank are holding up process by not releasing the deeds to the house.

    Where did you discover this?
    djimi wrote: »
    Its the bank that is holding up the sale and Im not sure that they will care too much if the buyer is imposing a deadline...

    How do you know this? Are you the OP too.


  • Options
    #10
    djimi
    Registered Users Posts: 13,238 ✭✭✭✭djimi


    the culture of deference wrote: »
    How do you know this? Are you the OP too.

    How do I know what? That the bank are holding up the deal? It says it in the OP; you actually quoted it in your post...

    Or do you mean how do I know that the bank will not care about a deadline? Well I dont know that, but somehow I seriously doubt that they are going to allow themselves to be hassled by the potential buyer of a property that they may not want to allow to be sold. I could however be wrong, so if the OP wants to start imposing deadlines then more power to them, but I really dont see it having much influence.


  • Options
    #11
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,278 Mod ✭✭✭✭The_Conductor


    Bigcheeze wrote: »
    If the other side went into this without agreement from the bank on how the existing mortgage would be dealt with I would say this sale is unlikely to happen.

    Agree 100% with Bigcheeze on this one.
    It was stupid of the sellers to put the house on the market without the agreement of their lender on how any NE was going to be dealt with. Liklihood of this sale going ahead- roughly nil........


  • Advertisement
  • Options
    #12
    Milk & Honey
    Banned (with Prison Access) Posts: 1,950 ✭✭✭Milk & Honey


    A lot depends on the background to the sale. If the bank were threatening repossession and were satisfied that full market value was being paid, the bank might sanction the sale. there would be a saving on legal costs and the costs of selling the property post repossession. There would also be the advantage of getting in the purchase price quickly.
    It could be of course that the vendors were morons who didn't know what they were doing putting the house on the market and the bank have no intention of facilitating them.
    The bank will be quite slow to come to a decision. There will be multiple layers of committee needed to approve a sale.


  • Options
    #13
    eoin95
    Closed Accounts Posts: 103 ✭✭eoin95


    smccarrick wrote: »
    It was stupid of the sellers to put the house on the market without the agreement of their lender on how any NE was going to be dealt with. Liklihood of this sale going ahead- roughly nil........

    I have approached my bank about this as I have had to move due to new job and won't be in a position to move back. My bank has told us they will not talk to us unless the house is sale agreed, then they might do a deal with us, "MIGHT"! So not sure if it was "stupid" of the sellers or were they forced into it! For the OP i'm sure the current owners want to or maybe even need to sell the house so I would not fret too much. As was said earlier try and ask them to level with you as they are probably only early into negotiations with bank who will have the final say... Don't think putting time constraints will have a dame bit of difference on the outcome, only raise stress levels for all involved. Can see it being a long process but best of luck...


  • Options
    #14
    djimi
    Registered Users Posts: 13,238 ✭✭✭✭djimi


    I guess from the banks point of view they wont know how much NE will be left until it goes sale agreed (ie the seller knows how much they are going to get for the place). You would have thought that the seller would have discussed the various scenarios with the bank when they approached them about the sale, but I suppose we dont know what they were told.


  • Options
    #15
    keithdelahunty
    Registered Users Posts: 168 ✭✭keithdelahunty


    Thanks for comments, especially Eoin95 for honesty. I agree no point hassling either my lawyer or couple selling but would have appreciated a little bit of honesty up front from Estate Agent, but as anyone who has had dealings with Irish Estate Agents that was never going to happen. I am still hoping sale will go through and am happy to wait and work with sellers.

    I discovered about the seller situation from my solicitor who I had chase up with the sellers solicitor as to why he has not yet received contracts after 5 weeks and he was told bank where holding it up by not releasing house deeds


  • Options
    #16
    Milk & Honey
    Banned (with Prison Access) Posts: 1,950 ✭✭✭Milk & Honey


    keithdelahunty wrote: »
    Thanks for comments, especially Eoin95 for honesty. I agree no point hassling either my lawyer or couple selling but would have appreciated a little bit of honesty up front from Estate Agent, but as anyone who has had dealings with Irish Estate Agents that was never going to happen. I am still hoping sale will go through and am happy to wait and work with sellers.

    How do you know the Estate Agent was aware of the situation?


  • Options
    #17
    Achosa
    Registered Users Posts: 9 ✭Achosa


    Achosa wrote: »
    We paid booking deposit on 20th June. Got contracts last Thursday after more than 3 months waiting. Closing date 12th Oct.
    It can take ages! Nerve wracking experience.

    Update - just got call from solicitor - vendor decided not to sell.... Gutted


  • Options
    #18
    the_syco
    Registered Users Posts: 37,295 ✭✭✭✭the_syco


    Achosa wrote: »
    Update - just got call from solicitor - vendor decided not to sell.... Gutted
    Ensure you get all deposits, etc, back; they broke the sale, not you.


  • Options
    #19
    eoin95
    Closed Accounts Posts: 103 ✭✭eoin95


    Achosa wrote: »
    Update - just got call from solicitor - vendor decided not to sell.... Gutted

    That's a shame, hard luck. I'd love to hear from a seller who has negotiated a deal with the bank to see what it takes, I know there was one last year well publicized where a person got a letter from bank saying they would not be liable for the negative equity but if I remember correctly the full story to this included masses amounts of debt etc and the person would never have been able to pay it back.
    Anyway, would like to hear from ordinary "joe soap" about deal done if any where they got a portion written off and repaid a portion if this has happened??


  • Options
    #20
    Milk & Honey
    Banned (with Prison Access) Posts: 1,950 ✭✭✭Milk & Honey


    the_syco wrote: »
    Ensure you get all deposits, etc, back; they broke the sale, not you.

    It wouldn't matter who broke the sale. The o/p would be entitled to the return of his deposits. A bigger question is who will pay his solicitor.


Advertisement