Buying a house in Negative Equity

Locoladee · 24-09-2014 6:03pm

@leinster19 Are you saying it is now 6 months since you signed your contracts and you still don't have keys? That is crazy!!! What is the hold-up there?

Locoladee · 24-09-2014 6:33pm

@leinster93 Are you saying it is now 6 months since you signed your contracts and you still don't have keys? That is crazy!!! What is the hold-up there?

on_my_oe · 24-09-2014 6:52pm

Locoladee wrote: »

I went to the estate agent back in early August to say that I was losing patience and all of a sudden I got word that I would have contracts soon. Now I'm thinking they were just trying to keep me on the hook a little longer. Why won't he answer calls? I mean just tell me already so I can get my deposit back and look elsewhere.

Honestly I'd recommend going around and knocking on the vendors front door... If the solicitor is overworked or lazy, then the vendor will deliver a kick up the a$$. If it's the vendor himself mucking around, you should get an inkling when you're face to face, and you'll know they're playing games with you.

leinster93 · 24-09-2014 7:48pm

Locoladee wrote: »

@leinster93 Are you saying it is now 6 months since you signed your contracts and you still don't have keys? That is crazy!!! What is the hold-up there?

6 months since we signed the contracts. Apart from finding out the vendor was in some sort of financial difficulty after we went sale agreed we are still unsure why it has taken this length. The estate agent assured us back in Oct 2013 that there was nothing sinister with the sale.
Anyway, with time we found this not to be the case and the estate agent denied any knowledge of it being a stressed property back 12 months ago.
In time we also found the vendors solr to be difficult along the way, never available: either in court or with a client; dragging their heels on everything. We have been through every emotion and frustrated with it all is an understatement but thankfully we are within a stone throw of it being all over. It certainly has been an endurance and wouldn't wish it on our worst enemies. It's a b$llix of a system. No politician wanted to know about it and said it was not their remit.
The Government have a lot to answer for in the way that policy is carried in relation to buying and selling property in this Country... and that goes for both the goverment of today and the last bunch of sh*tes.
Thankfully we have contracts signed or we would be having to fork out another 50k.
I feel sorry for those looking to buy and being subjected to all the crap but my advice is to hold off if one doesn't need to buy...
I do believe there is a bubble and that another crash will happen in the not too distant future (if the government don't interfere and prolong the inevitable). Time will tell I suppose...but one thing I believe for sure is that all good things come to those who wait.

2013Lara · 26-09-2014 8:10pm

So a bad day here

Vendor wants an extra 9500 euro.

As you all know, I'm living in the house. And as you all know we were given false hope a few months ago when we were told we were to close and drew the mortgage down.

We told the vendor that if we drew the mortgage down, we couldn't pay rent. He said yeah yeah that's grand, it'll only be a few days anyway. Now he's claiming this conversation never happened and wants the rent for those months.

We don't have 9500 Euro. So I don't know what will come of this.

But I know one thing, the vendor has a massive fight on his hands.

Diane Selwyn · 26-09-2014 8:22pm

what a nightmare! you poor thing it's so unfair - fair play for taking on the fight but do be aware that when your situation becomes gradually more and more stressfull you might not realise the toll it is taking on your health. Go for a run or get a massage or something and take a break from it for a few hours at least!

2013Lara · 26-09-2014 8:52pm

Diane Selwyn wrote: »

what a nightmare! you poor thing it's so unfair - fair play for taking on the fight but do be aware that when your situation becomes gradually more and more stressfull you might not realise the toll it is taking on your health. Go for a run or get a massage or something and take a break from it for a few hours at least!

I must have cried for about two hours when I got the phonecall. What else can I do but fight.

We love the house, our kids are happy, they have friends. I childmind and work from home, I have loads of work, finally financially comfortable after saving for so long. We can't afford a different house in the area as prices have risen, and the rents are 500 euro extra per month for the same size house.

Buying your first home is meant to be exciting. This experience has been the polar opposite.

Diane Selwyn · 26-09-2014 9:21pm

its seriously a legal form of extortion. Well I guess you know now that there is no point in verbal agreements to anything - no more Mrs Nice Guy!

2013Lara · 26-09-2014 11:36pm

Diane Selwyn wrote: »

its seriously a legal form of extortion. Well I guess you know now that there is no point in verbal agreements to anything - no more Mrs Nice Guy!

I have emailed the Independent. You can hopefully look forward to reading my story in the paper.

MouseTail · 27-09-2014 10:11am

That's unbelievable Lara, your solicitor and bank let you draw down a mortgage for a house you do not own. They have basically given you a huge unsecured loan? I can see where the vendor is coming from, he still has a mortgage to pay and has tenants who are paying no rent and acquiring rights.

What a mess. Have you got a second opinion from another solicitor?

2013Lara · 27-09-2014 10:31am

MouseTail wrote: »

That's unbelievable Lara, your solicitor and bank let you draw down a mortgage for a house you do not own. They have basically given you a huge unsecured loan? I can see where the vendor is coming from, he still has a mortgage to pay and has tenants who are paying no rent and acquiring rights.

What a mess. Have you got a second opinion from another solicitor?

Their solicitor told ours 3 months ago that the consent was in and that we would be closing. So ours sent contracts and deposit and drew down the mortgage (approval expiring that day), and we waited to close but the vendor changed his mind. Originally the bank had said he can sell and sort his issues out with the negative equity afterwards. He said they took that back but then let slip that he just didn't trust them.

We told the vendor that if we drew the mortgage down we couldn't pay rent and he said it was fine, that it'd only be a couple of days anyway. It's his own fault. All he does is lie through his teeth.

He has also never registered the tenancy with the prtb and has asked numerous times for the rent in cash.

MouseTail · 27-09-2014 10:37am

So where is your mortgage monies, is it in your Solicitors client account?

2013Lara · 27-09-2014 10:45am

MouseTail wrote: »

So where is your mortgage monies, is it in your Solicitors client account?

No, the solicitor informed the bank last week of the delay and the banks draft has now gone back to the bank. There is a moratorium on the account for a couple of weeks and then the loan will be cancelled if things aren't sorted. I don't see us getting another mortgage approval

leinster93 · 29-09-2014 11:23am

Good God. That is horrendous...I hope it works out.

HouseHunter13 · 29-09-2014 11:46am

2013Lara wrote: »

I have emailed the Independent. You can hopefully look forward to reading my story in the paper.

I didn't think there could have been a worst saga than mine but you definitely take the prize for most messed up NE sale.

The whole property industry in Ireland is an absolute shambles that there is nothing in place to stop the type of carry on that's been seen in this thread.

if you end up in the paper make sure you point out you're one of many!

if there is any justice Lara you'll get this house

fingers crossed for you

.............................................

in my own case now it looks like the vendor has fecked this so badly that the bank may now take possession of the house leaving me in limbo.

The EA says he would honour our agreement but the bank may want to go back to the market. this would prolong things for another 6 months and I wouldn't even be assured the bank would deal with me so all in all that would be bring me up to 2 years sale agreed on a house with no guarantee that i would get the house.

BookBook · 29-09-2014 2:06pm

2013Lara wrote: »

So a bad day here

Vendor wants an extra 9500 euro.

As you all know, I'm living in the house. And as you all know we were given false hope a few months ago when we were told we were to close and drew the mortgage down.

We told the vendor that if we drew the mortgage down, we couldn't pay rent. He said yeah yeah that's grand, it'll only be a few days anyway. Now he's claiming this conversation never happened and wants the rent for those months.

We don't have 9500 Euro. So I don't know what will come of this.

But I know one thing, the vendor has a massive fight on his hands.

But how can they ask for more 2013Lara if contracts have been signed?

2013Lara · 29-09-2014 2:49pm

BookBook wrote: »

But how can they ask for more 2013Lara if contracts have been signed?

We signed contracts but they didn't.

BookBook · 29-09-2014 3:03pm

2013Lara wrote: »

We signed contracts but they didn't.

Ah sugar. Sorry to hear that.
I really hope the Independent take up your story.

coll30 · 29-09-2014 3:06pm

2013Lara wrote: »

We signed contracts but they didn't.

Did you have to pay your solicitors fees ?
I'm not sure if I've to pay mine in afraid to ask. Luckily I've gone sale agreed on an apartment in dublin now hopefully this will go through quickly

gmisk · 29-09-2014 3:13pm

Horrible to hear that lara2013....you have defo been through the mill

2013Lara · 29-09-2014 3:15pm

coll30 wrote: »

Did you have to pay your solicitors fees ?
I'm not sure if I've to pay mine in afraid to ask. Luckily I've gone sale agreed on an apartment in dublin now hopefully this will go through quickly

Yeah we still have to pay regardless, worse still he put his fee up by 500 Euro because of the time frame!

Ms2011 · 01-10-2014 5:45pm

Autioneer rang today to say the bank have gotten back to them & they're finally ready to sell the house.
It will be a year at Hallowe'en that we agreed a sale with the auctioneer for this house. The auctioneer now has to recommend our winning bid on the house to the bank & hopefully the bank will accept it & we might actually get to move forward on this sale.
Saying a prayer, verses of the Rosery & litting a candle for everything to go ok:pac: too afraid to get excited:o

Hillybilly4 · 03-10-2014 6:27pm

Not a negative equity scenario as such but 7 months ago (beginning of March) we made an offer on a repossessed property. It took a month for the bank in possession to accept our offer. We signed our side of the purchase contract in July, with a completion date put in by our solicitor of 1st October. That date has come and gone...

There are so many debts associated with the property (original mortgage, further loan, commercial rates, commercial water rates, LPT etc) that add up to more than 100 times the property's current value...basically the owner never paid a bean from Day 1 and it took the bank more than 10 years to get round to repossessing the property. The latest spanner in the works is the NPPR charge that was never paid. The Co. Co. won't issue a Cert of Discharge until either the NPPR is paid (and the bank won't pay it) or the vendor (bank) can prove that the property was uninhabitable during the NPPR years and so the NPPR charge was never due. The only form of evidence that will be entertained by the Co. Co. are electricity "bills" that show the supply was disconnected. The electricity supplier won't provide this info due to data protection...and so everything is at an impasse. We "could" pay off the NPPR ourselves and then try and claim a refund but, judging by the bank's inability to obtain the relevant info, it would seem unlikely that we mere mortals would be able to succeed where they have failed so we'd be 7k plus out of pocket...

To end today's rant in fine style, my solicitor b****red off early for the day and so I couldn't even get to speak to him!

Diane Selwyn · 03-10-2014 7:30pm

Hillybilly4 wrote: »

Not a negative equity scenario as such but...

Ok so I believe that we have gone through the looking glass now! I don't know how you all cope - I get stressed out just reading posts on this thread. 7k is a lot of money on top of everything else - I wonder if the bank would sign something committing them to the sale on the condition that you pay it (if you are really prepared to do so)?

Ms2011 · 03-10-2014 7:50pm

Hillybilly4 wrote: »

The only form of evidence that will be entertained by the Co. Co. are electricity "bills" that show the supply was disconnected. The electricity supplier won't provide this info due to data protection...and so everything is at an impasse.

I am also trying to buy a repossed property & I was able to email the ESB with the MPRN no. ( I took it down off the electric box while viewing the property) & the address of the property & they were able to email me back the month & year the electricity was turned off, no problems!

2013Lara · 03-10-2014 8:06pm

Got a letter today basically saying, pay an extra 13000 or vacate the property so they can put the house back on the market.

Happy feckin Friday to me.

TheDriver · 03-10-2014 8:10pm

reading this thread makes me realise 3 things
1) I am so glad I pulled out of a negative equity property this year after 6 weeks
2) I lost bidding on a repossessed property which was all sale agreed but still on daft for sale
3) I will not touch a house in negative equity no matter how "ok" the EA says it is. Why don't the property supplements publish a story about these experiences or a good journalist or even RTE half hour documentary.

2013Lara · 03-10-2014 8:23pm

TheDriver wrote: »

reading this thread makes me realise 3 things
1) I am so glad I pulled out of a negative equity property this year after 6 weeks
2) I lost bidding on a repossessed property which was all sale agreed but still on daft for sale
3) I will not touch a house in negative equity no matter how "ok" the EA says it is. Why don't the property supplements publish a story about these experiences or a good journalist or even RTE half hour documentary.

You are very lucky.

The longer it goes on, the harder it is to pull out, as you always think good news is just around the corner.

I wish I had known more about negative equity sales. I would never have got caught up in such a big mess of a situation.

Aka Ishur · 03-10-2014 11:00pm

After going through the process of having the vendor pull out of our first choice NE property, (vendor wanted 3 YEARS to close), we have just signed contract there now for our repossessed property after putting in an offer in march which was accepted in may. Patience is the major price in these situations it seems.

Bank (KBC) selling rather than receiver which seems to be a better situation according to our solicitor. Title seems to be clear but we are paying for extra searches just in case. Last outstanding item is nppr which the bank has already committed to paying according to our solicitor. He has been pretty useful even if he is the most disorganised fecker I've ever met.

If anyone is thinking of going for such a property make sure you have a solicitor who you trust is going to really fight your corner because the first couple of contracts we received were pretty horrible. Also make it clear that you expect good communication. There is nothing worse than going three weeks without word.

There is definitely value there if you have the stomach for it. In our case it is a 3 bed semi with a good garden 25 mins from cork city centre. It was bought in 2011 for 245k. We will be paying (touching wood that there are no hold ups) 80k.

Hillybilly4 · 04-10-2014 9:41am

2013Lara wrote: »

Got a letter today basically saying, pay an extra 13000 or vacate the property so they can put the house back on the market.

Happy feckin Friday to me.

Jeez. Isn't that extortion?
It was the banks that helped get people into the mess of NE/repossessions (by means of over-valuation and indiscriminate lending) and now the same institutions are still able to feck up lives due to their greed. Just proves that the faceless bankers have the morals of sewer rats and IQs to match. Apologies to sewer rats.
What are you going to do?

Buying a house in Negative Equity

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