Buying a house in Negative Equity

2013Lara

Hi!

Just wondering what other peoples experiences have been when buying a house in negative equity? Time frames etc?

Were 8 weeks sale agreed on a house that is in, according to EA, about 100k of negative equity.

There has been little or no movement so far, contracts were sent out quickly and within two weeks of going sale agreed they were with our solicitor and the pre contract queries were raised.

Nothing since. No answers to letters sent to the vendors solicitor. Were getting worried.

Am I right in thinking the contracts have to be exchanged before the vendor can come to an agreement with his bank?

Prior to the 8 weeks, it took about 4 weeks for them to accept our offer as it went to the bank, so its getting a bit draining now at this stage!

djimi

I would imagine that every case would be different, depending on the bank involved and the relationship that they have with the seller? €100k is a lot of NE to be dealing with; I cant imagine too many banks being over the moon with the idea of coverting that to an unsecured loan.

Lou1984

Hi 2013Lara

I am in the same situation as you, went sale agreed on June the 11th so to months now. There is no movement it seems to be the bank holding up the process. The vendors are about 120k behind in there mortgage. The estate agent did say that it would take at least 12 weeks. Its annoying as it also took two weeks or more for them to get back to us on our offer.

Another thing, our soliciator told us he has been dealing ith a similar case since December and it was only resolved at the end of July

valleyoftheunos

I would imagine that the problem is between the Vendor and their bank. Its unlikely that contracts would issue without the Bank having agreed to the sale but that may have been conditional (eg the vendor providing a certain about of cash or other capital) and that condition has not been met yet.

All you can do is wait, these sort of sales are likely to take a while and it may be worth your while looking at other properties while you wait.

2013Lara

Thanks all.

Were just worried its going to fall through. Were moving about 30 mins from where we are now and our daughter starts school down there in four weeks ish time. Were going to be renting the house until the sale closes, but the rent is 200 euro more than the mortgage will be so well be very eager to get it all wrapped up.

Fingers crossed its just going to take time and will all work out.

Lou1984

We are the same we have bought a lot of furniture etc for the house thinking it would take 3 -4 months but to months and no nothing. Very worried about it falling through also.

I will report back if i have any change but don't think it will be anytime soon.

2013Lara

Lou1984 wrote: »

We are the same we have bought a lot of furniture etc for the house thinking it would take 3 -4 months but to months and no nothing. Very worried about it falling through also.

I will report back if i have any change but don't think it will be anytime soon.

Its so stressful isn't it. The thought of starting the whole process on another house is killing us! As well as the extra cost of work already done by the solicitor, valuations and surveys.

Will let you know how we get on aswell.

valleyoftheunos

2013Lara wrote: »

Thanks all.

Were just worried its going to fall through. Were moving about 30 mins from where we are now and our daughter starts school down there in four weeks ish time. Were going to be renting the house until the sale closes, but the rent is 200 euro more than the mortgage will be so well be very eager to get it all wrapped up.

Fingers crossed its just going to take time and will all work out.

Its difficult situation alright but if contracts have been signed by both parties and exchanged you will get there in the end.

MammaMurphy

hi @2013Lara,

we are in the same situation, we sale agreed on our new house on 25th April 2013 and signed our side of the contracts on the 6th June 13, paid our 10% down the following week and only last friday (9th August 13) were we told that the vendor had finally been approved for his personal loan to cover his negative equity on the mortgage.

We are awaiting a closing date which we should get confirmation of today! We had so many closing dates and we felt like giving up, but hang in there if it is the house of your dreams and it will all fall into place.

Altogether we are waiting nearly 16 weeks to close this deal, but its the banks that are delaying everything so i know its not easy but hang in there and it will be yours.

gmisk

2013Lara wrote: »

Hi!

Just wondering what other peoples experiences have been when buying a house in negative equity? Time frames etc?

Were 8 weeks sale agreed on a house that is in, according to EA, about 100k of negative equity.

There has been little or no movement so far, contracts were sent out quickly and within two weeks of going sale agreed they were with our solicitor and the pre contract queries were raised.

Nothing since. No answers to letters sent to the vendors solicitor. Were getting worried.

Am I right in thinking the contracts have to be exchanged before the vendor can come to an agreement with his bank?

Prior to the 8 weeks, it took about 4 weeks for them to accept our offer as it went to the bank, so its getting a bit draining now at this stage!

I went sale agreed in February (seller in negative equity) .....so I think you are gonna have to be pretty patient/not in a rush.

2013Lara

gmisk wrote: »

I went sale agreed in February (seller in negative equity) .....so I think you are gonna have to be pretty patient/not in a rush.

Oh God, that's long. My head already hurts and I'm only almost 9 weeks in. What's the story with your mortgage approval, did they just extend it?

gmisk

I am with AIB they did thankfully, just had to provide updated statements for savings accounts, credit cards etc.

I know how frustrating it can be believe me!...but I am hanging in as got a good deal on the house (one recently sold a few doors up for 50k more a few weeks back)....it should be done in a few months (apparently/hopefully...).

2013Lara

gmisk wrote: »

I am with AIB they did thankfully, just had to provide updated statements for savings accounts, credit cards etc.

I know how frustrating it can be believe me!...but I am hanging in as got a good deal on the house (one recently sold a few doors up for 50k more a few weeks back)....it should be done in a few months (apparently/hopefully...).

We got a good price too. Were with PTSB so I think well have to get onto them and see what the story is with an extension. Loan pack went in and within it it said we only have 40 days to draw down. While nothing has changed work wise, we haven't really been saving as have been spending money on house stuff. Well have to get back on track for the foreseeable I think

MammaMurphy

2013Lara,

We sale agreed on the 25th April 2013, and just got a call yesterday that we are closing next Thursday!

So hang on in there, it is the irish banks that are delaying everything, our solicitor got a copy of the vendors loan approval and tbh his negative equity was quite small, i taught it would have been for like double the amount. He was in neg equity of 60k and it took 4 months for his bank to approve him for that.

We were nearly pulling our hair out, but try get onto your bank/broker and let them know whats going on so that they can extend your mortgage loan approval even for another 2 months so you are not worrying about it running out.

Hope eveything goes well for you, we know exactly what you are going thru.

2013Lara

Congrats, glad your finally sorted!!

Were hanging in, 9 weeks sale agreed now, still at pre contract stage. Will let you know when we finally close, good luck with the move!

MammaMurphy wrote: »

2013Lara,

We sale agreed on the 25th April 2013, and just got a call yesterday that we are closing next Thursday!


So hang on in there, it is the irish banks that are delaying everything, our solicitor got a copy of the vendors loan approval and tbh his negative equity was quite small, i taught it would have been for like double the amount. He was in neg equity of 60k and it took 4 months for his bank to approve him for that.

We were nearly pulling our hair out, but try get onto your bank/broker and let them know whats going on so that they can extend your mortgage loan approval even for another 2 months so you are not worrying about it running out.

Hope eveything goes well for you, we know exactly what you are going thru.

caitlyn1981

Hi,

did you ever close the sale of your house in the end i was following your thread and thought it was disgraceful how you had been waiting so long would love to know how you got on.

2013Lara

caitlyn1981 wrote: »

Hi,

did you ever close the sale of your house in the end i was following your thread and thought it was disgraceful how you had been waiting so long would love to know how you got on.

Hi! Still waiting unfortunately. We'll be 12 weeks in this week. Still mostly silence from their side. Our solicitor received a letter asking for a letter to be sent to them stating that we are mortgage approved and still willing to go ahead with the sale, this was to go to the vendors bank.

Keeping fingers crossed for this week!

Lou1984

Hi all.

Finally got official word that bank have released the deeds off the house to be sold. Contracts being signed next week fingers crossed. everything should be done and dusted in 5-6 weeks . Finally there is light at the end of the tunnel, well fingers crossed anyway

facepockets

Just reading all these posts shows we be waiting a while. Our bid was accepted on the 5th September and everything is done our end. The other party is with the IBRC and is waiting on them to issue a letter of consent. I think he only owes a small sum (€20K) after the sale of the property. We are not going through a estate agent so we have to do all the running around ourselves.

Huge congrats to everyone who got closing dates!

Lou1984

Hi Facepockets

We went Sale agreed on June 11th we had everything in place the following week deposit paid, mortgage approved and solicator ready and waiting to hear.

Only last Friday the 18th of October almost 17WEEKS after did the finally get the letter of consent.
So frustrating.

facepockets

Hi Lou1984

going by your time frame it will be well into December before we get anywhere. Which makes it more frustrating is our solicitor emailed the other persons solicitor today so basically say they wont be chasing them anymore for updates until they sort everything out there end and receive the letter of consent. Dunno why we are paying them if they wont keep push on the other parties solicitor.

Luckly for us its a private sale so we get texts every now and then from the owner to say he is keeping push on his bank to sell the house.

We are prepared to wait for this house so hopefully it wont be long. We have heard that if the negative equity is with the IBRC it will take some time to issue the letter of consent and that Permanent TSB are the quickest banks to issue the consent letters

Wolfie67

We also made a bid (asking price) for a house in NE... and estate agent told us it can take awhile, Nov 1st we made an offer, Dec 7th I finally managed to get the estate on phone to have a chat about the bid, after the call we decided to offer the asking price with hopes of speeding things up, 2 weeks ago I got a call from my solicitor to say she was ready to sign off our house sale.....I told her I still had no information on house we want to buy, she said she would hold off until after xmas but the buyers might decide to walk away!!

What are the financial implications of our buyers pulling out of our house sale???
Its all very stressful......

2013Lara

Wolfie67 wrote: »

We also made a bid (asking price) for a house in NE... and estate agent told us it can take awhile, Nov 1st we made an offer, Dec 7th I finally managed to get the estate on phone to have a chat about the bid, after the call we decided to offer the asking price with hopes of speeding things up, 2 weeks ago I got a call from my solicitor to say she was ready to sign off our house sale.....I told her I still had no information on house we want to buy, she said she would hold off until after xmas but the buyers might decide to walk away!!

What are the financial implications of our buyers pulling out of our house sale???
Its all very stressful......

Were still waiting on news of our house, sale agreed mid June. Valuer out from vendors bank last week so finally a bit of movement on it. But just be warned, you could be in for a very long wait. Vendors bank is EBS.

Wolfie67

Hi
Thanks for your reply:)

What was the time scale from the time you made your bid to it being accepted....we made original bid Nov 7th and still have not heard a thing....even tho we upped our bid Dec 1st ...to see if that would speed things up...est agent was happy with the new bid...but no surprise there .....

HouseHunter13

gmisk wrote: »

I am with AIB they did thankfully, just had to provide updated statements for savings accounts, credit cards etc.

I know how frustrating it can be believe me!...but I am hanging in as got a good deal on the house (one recently sold a few doors up for 50k more a few weeks back)....it should be done in a few months (apparently/hopefully...).

Lou1984 wrote: »

Hi 2013Lara

I am in the same situation as you, went sale agreed on June the 11th so to months now. There is no movement it seems to be the bank holding up the process. The vendors are about 120k behind in there mortgage. The estate agent did say that it would take at least 12 weeks. Its annoying as it also took two weeks or more for them to get back to us on our offer.

Another thing, our soliciator told us he has been dealing ith a similar case since December and it was only resolved at the end of July

2013Lara wrote: »

We got a good price too. Were with PTSB so I think well have to get onto them and see what the story is with an extension. Loan pack went in and within it it said we only have 40 days to draw down. While nothing has changed work wise, we haven't really been saving as have been spending money on house stuff. Well have to get back on track for the foreseeable I think

wondering how it worked out for you guys?

I'm sale agreed mid june, still nothing back from the bank...

Eldarion

HouseHunter13 wrote: »

wondering how it worked out for you guys?

I'm sale agreed mid june, still nothing back from the bank...

That's insane. I went sale agreed mid May last year, I moved in August 1st. And even that was long because it was summer months and people were taking holidays. No way should you be waiting this long.

HouseHunter13

Eldarion wrote: »

That's insane. I went sale agreed mid May last year, I moved in August 1st. And even that was long because it was summer months and people were taking holidays. No way should you be waiting this long.

its amazing when you want something so much how easy you get strung along...

I don't get why the bank cant just come out and say no if there is a problem at least I could move on...

where is the buying 2014 thread?

facepockets

HouseHunter13 wrote: »

its amazing when you want something so much how easy you get strung along...

I don't get why the bank cant just come out and say no if there is a problem at least I could move on...

where is the buying 2014 thread?

We went sale agreed on 9th of September. Told 4th December the bank will agree to let us buy the house from the seller. Its now the 7th of Jan and the letter of consent is sitting on someone's desk in the bank waiting to be signed. The joys of buying a house in negative equity!!!

2013Lara

Eldarion wrote: »

That's insane. I went sale agreed mid May last year, I moved in August 1st. And even that was long because it was summer months and people were taking holidays. No way should you be waiting this long.

Also sale agreed mid June, still waiting

facepockets

Laura we have been waiting 18 weeks to the day. Got call to say consent letter received and we are going to sign draft contracts early next week.

Hang on in there it will work out for the best!

Mr.McLovin

Were you guys informed the house was in NE when you agreed the purchase or was it something you found as things took longer than they should?

A friend of mine has found himself in a situation as described by people in this thread. He only found out the house was in NE after contracts failed to arrive on numerous occasions as promised. Does an EA have to disclose this fact when selling you a house?