Buying a house in Negative Equity

D3PO

I don't believe they have to disclose this information but if I were in the market right now Id be asking if a property was in NE or if it had been repod etc before making any offer.

rionn

Hi I went sale agreed on a house on the 15th of October had to wait till the 3th of December before the bank agreed to the sale and now things have been sitting with the banks solicitor with no contact to my solicitor.

My solicitor has emailed/rang a few times and has been told by the solicitors receptionist that it is wit a company of 40 solicitors and she does not know who is dealing with it.

Has anyone else experienced this when we got the consent to sale from bank we thought the worst was over us but its not looking that way

markuskon

rionn wrote: »

Hi I went sale agreed on a house on the 15th of October had to wait till the 3th of December before the bank agreed to the sale and now things have been sitting with the banks solicitor with no contact to my solicitor.

My solicitor has emailed/rang a few times and has been told by the solicitors receptionist that it is wit a company of 40 solicitors and she does not know who is dealing with it.

Has anyone else experienced this when we got the consent to sale from bank we thought the worst was over us but its not looking that way

hi
I went sale aggreed 5th of August 2013 for a property in Santry - until now 16.01.2014 I am in the same state - sale agrred the contracts have not been sent out from the vendor's solicitor- - Bank of Ireland does not want to release the deeds (or is overwhelmed with the doumentations/procedure etc) and the vendor's solicitor is not very attentive at all. Do not know if to wait or look around for something elese over 5 months is a long time..... really gutted here

mimsey

In the same situation. Went sale agreed on a property in Santry on the 26th of September. As of today I've been waiting 4 months to see if the bank will release the letter of consent. At this point I have pretty much given up. The Real Estate agent stopped taking my calls. My solicitor feels its not going to happen. I even went and contacted the vendors solicitors who was helpful but really couldn't tell me if the bank would consent to the sale or not. And if they would what the time frame would be.

I only found out the situation when I started ringing my solicitor about contracts and what was the delay this was about 4 weeks after going sale agreed.

markuskon

my estate agent is better in this respect. He picks up the calls and responses to txt messages. He also advised me to look around on the market and if we find anything nice, he is ready to give back the deposit to go ahead with a new purchase. Of course right now it is difficult to step back as we have something that might be suceessful. In the meantime i found in irish independent from 15.01 that there are round 1500 such buyers like us ;-(. The problem is that banks do not know how to handla such purchaesas. I really d not know how long I can go on like this waiting in space ;-(:mad:
the most frustrating project ever

markuskon

I forgot to add: Accoring to my EA the bank expressed an oral consent to sell, the solictor has been waiting for a written consent from 13.11.2013 ;-( anybody knows how long it might take?

rionn

Feel your pain this is so hard not knowing how long this is going to take, u'd think when they made there minds up to put the houses on the market that they would have had all this sorted.. Has anyone here been threw this with the consent to sale issued but now been held back with deeds and contracts been issued.

Would love an idea of time scale as we had notified school of move for our son and gave them a date of the end of Feb but this is looking soo unlikely now .. We gave them this date way back at end of November thinking we were giving ourselves loads of time (

2013Lara

rionn wrote: »

Feel your pain this is so hard not knowing how long this is going to take, u'd think when they made there minds up to put the houses on the market that they would have had all this sorted.. Has anyone here been threw this with the consent to sale issued but now been held back with deeds and contracts been issued.

Would love an idea of time scale as we had notified school of move for our son and gave them a date of the end of Feb but this is looking soo unlikely now .. We gave them this date way back at end of November thinking we were giving ourselves loads of time (

What bank is your vendor with? Ours is EBS and have been a complete disaster, yet my sister in law works with Ulster Bank and says its quite quick with them. Our hearts are broken with it all at this stage. We have been sale agreed since mid June with contracts issued straight away. In constant contact with the vendor himself and its not him at fault, its his bank. Our mortgage has now expired and they want all of our paper work again, complete nightmare. Were living in the house we will be hopefully be buying, and the thought of it not going ahead is killing us. Moral of story, buying a house in negative equity is not easy, it's a long wait and I'd never do it again.

rionn

Just found out 2d it is a nama property??? I went down to do some weeding and a man landed to do work he said he was asked by nama receivers to board up the windows etc and clean around the place, nearly had heart failure I told him I have been sale agreed on this property since the 15th of Oct.

He rang whoever asked him to do it and put me on the phone to him when I told him that we were sale agreed since Oct and the bank had sent out the consent to sale on the 3rd of Dec he said to tell your man not to board it up.

This has left us feeling like **** don't know whats going on is the house even sale agreed.. What a nightmare!! Thought this buying a house would be an enjoyable experience but I was soo wrong

Governess

Hi Guys,

I came across this thread by accident and want to give you some feedback as I was a vendor in NE last year.

My mortgage was in arrears and we decided to put the house up for sale in November 2012. We approached the bank prior to this and they said we would need a firm offer in place before they would allow us to sell.

We received a cash offer in March 2013 and went back to the bank, verbally they said it would be ok to sell so we found a Solicitor and set the ball rolling. Deeds were with our Solicitor in 3 weeks and all was going to plan until pre contract stage.

Our Buyer's Solicitor requested paperwork from our Lender to show that the mortgage will be discharged from the property once the sale has gone through. The bank then claimed that they will need to get a valuation done and loads of additional paperwork would need to be done before they would approve the sale.

I then started emailing the bank advising that if they stopped the sale, we would not be in a position to make even interest only payments and they would have to repossess. I did this a few times a day for 2 days then a valuation was done and within a 10 days of the Bank threatening to stop the sale, my Solicitor had received the letter consenting sale and that the mortgage will be discharged.

From being sale agreed to completion, we were 8 weeks but I know this was down to having to be ruthless with the bank and bombarding them with emails.

The bank also need the Vendor to sign a letter to say the NE will be repaid. Our Solicitor advised that the Bank do pull stunts like this from time-to-time especially at pre contract stage.

I wanted to move and worked hard to ensure the Bank wouldn't stop the sale. I think the onus is on the Vendor to put pressure on the bank.

NE was 30k and Lender was EBS

I hope this helps!

gmisk

markuskon wrote: »

my estate agent is better in this respect. He picks up the calls and responses to txt messages. He also advised me to look around on the market and if we find anything nice, he is ready to give back the deposit to go ahead with a new purchase. Of course right now it is difficult to step back as we have something that might be suceessful. In the meantime i found in irish independent from 15.01 that there are round 1500 such buyers like us ;-(. The problem is that banks do not know how to handla such purchaesas. I really d not know how long I can go on like this waiting in space ;-(:mad:
the most frustrating project ever

http://www.independent.ie/irish-news/banks-have-stockpile-of-1500-repossessed-properties-29917294.html
Is this the article you mean?

I am into another mortgage offer from AIB...last one in December.....very little sign of any movement...I have had a few false dawns at this stage.
My solicitor is insisting on putting a deadline to close the deal...but I am very reluctant to lose the house at this stage.

facepockets

we have been sale agreed since 9th September. We got call the 4th December to say the sellers bank IBRC finally were issuing the letter of consent. On the 5th of Jan 2014 we were told the letter was sitting on someones desk in the IBRC to sign.
13th of Jan we signed draft contracts and now waiting for a closing date.We have a provisional date the 1st March but hoping to be in before then.
Its terrible to wait the amount of time we all did. Only thing is to keep the pressure on and if its meant for you it wont pass you by.

HouseHunter13

sale agreed 22nd of June, I have been told consent has been given for the sale but still waiting for it to be issued.

I would seriously recommend anybody in the market for a property to ask if the house is in negative equity. I'm not out of the woods yet and there is still no guarantee that the purchase will be completed 7 months after I handed over the deposit.

murphy2

gmisk wrote: »

I am into another mortgage offer from AIB...last one in December.....very little sign of any movement...I have had a few false dawns at this stage.
My solicitor is insisting on putting a deadline to close the deal...but I am very reluctant to lose the house at this stage.

Hi gmisk,

Just wondering if you've had any update on your house yet?

We went sale agreed in November and were told last week it could be at least another 6 weeks before the letter of consent will be released but not really holding out any hope on that. The Vendor's in our case are going through a divorce and there is around 200k in negative equity that needs to be agreed, another complication is that they are hoping to make use of the insolvency act. Our mortgage offer will run out in 5 weeks.

Was gutted for you to see you've been waiting since February, hopefully you'll have an update soon.

gmisk

Nope very little movement, I found out the vendor is in negative equity with AIB (only months after being sale agreed) and there are questions going back and forth between vendors solicitor and vendors bank (still!).

In my case EA has actually been quite good, lots of phone calls and emails, but not much he can do (He says he has one other house in similar situation with KBC as lenders...that has been going on 11 months).

I renewed mortgage offer about a month ago...so have another 5ish months to close things....so we will see...I am not under massive time constraints myself which is lucky I suppose.

If I was you I would really consider running for the hills....unless you have a great deal and you think there is a good chance deal will be OK'ed by bank.

I wouldnt in a million years consider bidding on another house unless the vendor has ok from bank to sell....which this person evidently didnt have!

murphy2

We just got a phone call today from our EA to say that the title deeds have been released and being sent to our solicitor. There is still no sign of the letter of consent though and they couldn't give us any time frame on when this may be released.

What stage are ye at? Have any deeds been released even?

We are currently living with my parents so its not costing us anything having to wait but just afraid at the end of it all that the sale may not go through and that house prices may rise in the mean time. Also there are very few houses for sale in the area that we are looking at.

Our vendor had verbally been given the consent to sell but I don't know if that means anything!

lukesmom

We went sale agreed on our house 7 months ago at the start of summer. Only yesterday did our solicitor receive the letter from the bank to say the property could be sold. So it has taken 7 months to get the contracts which we sign tomorrow morning. I was worried it wouldnt come through and we had paid a deposit. We are cash buyers and I thought this would have sped up the process but it didn't.

HouseHunter13

Has anybody completed one of these NE house sales yet?

Entering week 33 here and my mortgage is to expire next week just to add more stress, I'm starting to think it will never happen.

2013Lara

HouseHunter13 wrote: »

Has anybody completed one of these NE house sales yet?

Entering week 33 here and my mortgage is to expire next week just to add more stress, I'm starting to think it will never happen.

Just gone through a full New mortgage application so I feel your pain. Going to get on to them again today to see where the situation stands. We've been approved the mortgage again, so actively house hunting again to be on the safe side. Complete nightmare.

HouseHunter13

2013Lara wrote: »

Just gone through a full New mortgage application so I feel your pain. Going to get on to them again today to see where the situation stands. We've been approved the mortgage again, so actively house hunting again to be on the safe side. Complete nightmare.

Keep us posted on your progress!

rionn

Would love to know this also, we are 16wks in the consent to sale came out on the 3rd Dec have been waiting on contracts since then but no sign of them yet. How far along are you guys how long since consent to sale was given and how long did you wait for contracts to be sent out.. Would like to know these answers as they will give me an idea of how long I have to wait.

Is soo down heartening if I'd of known what I know now I don't think I would have even looked at the house to begin with.:eek:

HouseHunter13

Anybody made any progress?

2013Lara

HouseHunter13 wrote: »

Anybody made any progress?

Still waiting. I'm living in the house and an A4 handwritten envelope arrived today for the vendors from their bank. Keeping everything crossed that it's related to the sale. 8 months in now. I'm so fed up.

HouseHunter13

2013Lara wrote: »

Still waiting. I'm living in the house and an A4 handwritten envelope arrived today for the vendors from their bank. Keeping everything crossed that it's related to the sale. 8 months in now. I'm so fed up.

I feel your pain, had the EA has been stringing me along telling me they had consent just after Christmas, I got suspicious and got onto their solicitor last week who told me they only had a name of someone in the bank to deal within the case last week.

Even if they arrange some agreement with the NE, the bank may not agree with price agreed and might look for more money off me which I don't have. I find myself getting priced out of what I bought even though I let houses in the same estate pass me by for cheaper than I paid.

Total nightmare

I just hope to logon to this thread and see someone who has came through on the other end of this which would give me some hope!

HouseHunter13

2013Lara wrote: »

I'm living in the house and an A4 handwritten envelope arrived today for the vendors from their bank.

BTW I don't think I could cope sitting there with that envelope looking at me, I think I'd steam open it :pac:

2013Lara

HouseHunter13 wrote: »

BTW I don't think I could cope sitting there with that envelope looking at me, I think I'd steam open it :pac:

So very very tempting!! But knowing me I'd make an absolute mess of it and they'd be getting a crinkled letter that has been sellotaped shut haha while I am really hoping it's to do with the consent, part of me is thinking the consent would more than likely go to the solicitor and not direct to the vendor. Has a valuer been sent to the house from the vendors bank? Ours arrived before Christmas yet still no joy.

I'm the exact same. Very very little for sale here now and very much doubt we'd get anything else for the price. Painful part is I doubt the owner is paying the mortgage yet we are handing him rent every week.

Will be updating here as soon as we have any news. How did your mortgage renewal go actually?

HouseHunter13

2013Lara wrote: »

So very very tempting!! But knowing me I'd make an absolute mess of it and they'd be getting a crinkled letter that has been sellotaped shut haha while I am really hoping it's to do with the consent, part of me is thinking the consent would more than likely go to the solicitor and not direct to the vendor. Has a valuer been sent to the house from the vendors bank? Ours arrived before Christmas yet still no joy.

I'm the exact same. Very very little for sale here now and very much doubt we'd get anything else for the price. Painful part is I doubt the owner is paying the mortgage yet we are handing him rent every week.

Will be updating here as soon as we have any news. How did your mortgage renewal go actually?

No valuer has been out as far as I know but I haven't really been kept in the loop at all, its hard to know if you are being told the truth.

I haven't sorted the renewal yet, leaving that with the broker to sort out, thank god I have one as its hard enough trying to make sense of what is going on.

Well I keep my fingers crossed i'll log on next time to find you've closed the deal!

lukesmom

We were waiting since June last year and only signed contracts 3 days ago so keep the heads up. Took ages to get permission from Nama. Will probably be another 3-4 weeks before we get the deeds. We have been living in our new home since June as that was the agreement after we paid deposit. So it took 8 long months to sign! :0

HouseHunter13

lukesmom wrote: »

We were waiting since June last year and only signed contracts 3 days ago so keep the heads up. Took ages to get permission from Nama. Will probably be another 3-4 weeks before we get the deeds. We have been living in our new home since June as that was the agreement after we paid deposit. So it took 8 long months to sign! :0

Great to hear something positive!

Was there any question of the current market value compared to the sale price you agreed after such a long time?

gmisk

Great to hear some movement for people...........I have had zero......mortgage application valid for 3 1/2 months more......

Any hints or tips about tactics for moving along would be appreciated.