Sale agreed on a negative equity house

miabee

Hi all,

Looking for some advice if anyone knows anything or has had similar experience.

I went sale agreed on a property and put a booking deposit down 5 weeks ago. I received a phone call today from my solicitor informing me that there is a delay on the contracts due to the house being in negative equity. We were never told this until today and as far as we knew it was supposed to be a quick sale as the house is currently empty as is the venders investment property.
We have been informed the hold up is due to their solicitor waiting on a declaration from ebs bank confirming there acceptance of the sale going through. Apparently they are not massively in negative equity.

Does anyone know how long it takes for this declaration from the bank. Also has anyone experience in this kind of situation.

I am getting nervous now and unsure whether to just walk away but am in love with the house :-( afraid the sale Will not go through now and don't want to waste anymore time if it Will end up not selling anyway.

Any opinions greatly appreciated..

The_Conductor

A declaration from the bank can take literally months. They don't seem to be capable of making a fast decision. All you can do is keep at them- they will inevitably get around to it- eventually- just don't expect it to happen quickly.

miabee

The_Conductor wrote: »

A declaration from the bank can take literally months. They don't seem to be capable of making a fast decision. All you can do is keep at them- they will inevitably get around to it- eventually- just don't expect it to happen quickly.

Really.. I was afraid to hear that. I suppose ill just have to decide whether to walk away now or wait it out. Im just afraid ill wait months then they still won't sell.
Awh buying houses is a nightmare. This is my second attempt. Last on had contract signed and 10% deposit paid 16 weeks in then they decided they weren't moving. Unbelievable.

The_Conductor

miabee wrote: »

Really.. I was afraid to hear that. I suppose ill just have to decide whether to walk away now or wait it out. Im just afraid ill wait months then they still won't sell.
Awh buying houses is a nightmare. This is my second attempt. Last on had contract signed and 10% deposit paid 16 weeks in then they decided they weren't moving. Unbelievable.

They will sell- sooner or later. The seller needs to get their ducks lined up- they have a buyer for the house at a reasonable price- now they need to figure how to deal with the NE part of the equation- and get agreement from the bank on how the negative equity will be dealt with- before the bank give the go-ahead for the sale.

It will happen- just not over night. There is no reason why it won't all fall into place- it could just take a little longer than you originally anticipated.

djimi

Identical thread from a few weeks back: http://www.boards.ie/vbulletin/showthread.php?p=85908737

From what people are saying in that thread you are going to have to be prepared to wait months for this to be sorted.

caitlyn1981

hi,

theres a house for sale on my road dublin 15 apparently house in negative equity sale agreed in april nothing since. Iwould love to know whats happening with it.

The_Conductor

caitlyn1981 wrote: »

hi,

theres a house for sale on my road dublin 15 apparently house in negative equity sale agreed in april nothing since. Iwould love to know whats happening with it.

If you know the sellers- ask them, otherwise, you'll just have to hold on and wait and see what happens.

gmisk

miabee wrote: »

Hi all,

Looking for some advice if anyone knows anything or has had similar experience.

I went sale agreed on a property and put a booking deposit down 5 weeks ago. I received a phone call today from my solicitor informing me that there is a delay on the contracts due to the house being in negative equity. We were never told this until today and as far as we knew it was supposed to be a quick sale as the house is currently empty as is the venders investment property.
We have been informed the hold up is due to their solicitor waiting on a declaration from ebs bank confirming there acceptance of the sale going through. Apparently they are not massively in negative equity.

Does anyone know how long it takes for this declaration from the bank. Also has anyone experience in this kind of situation.

I am getting nervous now and unsure whether to just walk away but am in love with the house :-( afraid the sale Will not go through now and don't want to waste anymore time if it Will end up not selling anyway.

Any opinions greatly appreciated..

I would say I hope you are not in a rush!...in same position as yourself...sale agreed on house since end of february....was supposed to have contract two weeks ago but still no sign.

denise13

Hi We have just come across the same thing and are also on our second house sale after the first sale fell through due to not building certificate with extension and now this new house we have just found out after 9 weeks that it is in negative equity and cant get deeds released from bank so had to walk away Have you walked away or had any luck with a new house.

gmisk

Im still hanging on in this house....mortgage offer expires in 8 weeks....I might give up at that point tbh.

I honestly would walk away if I was you.

miabee

im still hanging in..

our solicitors received the contracts almost 2 weeks ago but they would not let us sign without getting this declaration from the venders bank to ensure sale will go through.

i rang the estate agent yesterday and he said that the venders bank will not send out the declaration without the contracts being signed by me. so seems its my solicitor holding it up at the moment. i don't know who to trust in this game!!

i rang them so annoyed and they said that by me signing there is still no guarantee the sale will go through until they receive the declaration and get signed copies back from the vender.

so i have decided im signing tomorrow and giving through 10% deposit and hopefully that will speed things up if not at least i did all i could. fingers crossed there will be some movement on it soon..

Lou1984

Hi i am in the same situation as you, sale agreed since start of June. Heard nothing untill late last week that the bank were allowing them to sell and an independent valuer will be looking at the house on Friday. Contracts should be ready to sign in a few weeks. Delighted to see some progress at long last. But im sure it will still take another few months.

Love the house so i do not want to walk away.

miabee

this situation seems to be getting worse. finally got things sorted signed the contracts and picked a closing date for Friday the first of Nov. my cheque didn't issue till the Monday so closing was supposed to be Tuesday. then it turns out the seller was on holiday so hadn't signed his final document and closing was supposed to be today. now they are saying the 14th. but im paying my mortgage from the first and life policy and house insurance paid for and still no keys? my solicitor isn't giving us much help on this seems very strange. i don't know what to do now :-(

facepockets

Hi Miabee
Have you had any joy on your house? The third parties solicitor send the draft contracts and everything we need in post( copies of planning for extensions etc) we were told the banks valuer would be out last week.
Did you wait long after the banks valuer went out before you signed contracts?

missjuly

Hi guys im currently in a similar situation myself but literally only found out the whole negative equity situation the other day :-(. Really hope to get things moving but afraid this is going to be a big hold up. I was just wondering if you's got your situations resolved and sales went through and how long it took? I know my sellers bank is ebs and my solicitor has warned me they can be very slow :-(. Any info or advice would be much appreciated

gmisk

From my personal experience....pull out now while you are still sane! I waited close to a year to complete on a neg equity house purchase...it's heart breaking...I would really advise looking elsewhere

miabee

Hi missjuly,
Im sorry to hear you are going through this now it seems to be a common occurance these days luckily for me it was all revolved and i got my keys in November last it felt like the longest wait ever at the time but now its a distant memory thank god as soon as the bank did there side we got the keys within 3 weeks. I would hold out a friend of mine is in the same position since Feb and is getting her keys on the first of July. The sales do go through they just need patience which i know is so hard at the time and unbelievably stressful. A lot of the houses for sale these days are unfortunately in the same position. I wish you all the best.

on_my_oe

We are six months, and the vendor is only just opening discussions with their bank after five months of form filling.

We have given up hope

HouseHunter13

I've just passed the year mark, run and don't look back would be my advice

2013Lara

Run as fast as you can! I have also passed the year mark. My vendor is with EBS, they have been an absolute disaster. I think were finally getting somewhere but unless your willing to wait a very long time and go through new mortgage applications every 6 months I would cut my losses and move on. If Id have known this would happen I would never have gone near the house. Get your deposit back and move on.

missjuly

Hi guys, thank you so much for the replys.....so one good outcome and a few not so good-sorry for yous! I only found out about this last week going to ring solicitors again this week for an update but if it going to be long i would rather cut my losses....I don't want to get sucked in...which I am afraid is what will happen! Fingers crossed by some miracle it will all work out...for yous too :-). Thanks again!

Update- I rang my solicitor he was onto the sellers solicitor and apparently the bank are going to release the deeds of the house and there should be contracts soon....but we are still waiting on consent from bank! I assume the contracts being ready is irrelevant if there is still bo consent from the bank? I am a bit clueless about this whole thing!

2013Lara

missjuly wrote: »

Hi guys, thank you so much for the replys.....so one good outcome and a few not so good-sorry for yous! I only found out about this last week going to ring solicitors again this week for an update but if it going to be long i would rather cut my losses....I don't want to get sucked in...which I am afraid is what will happen! Fingers crossed by some miracle it will all work out...for yous too :-). Thanks again!

Update- I rang my solicitor he was onto the sellers solicitor and apparently the bank are going to release the deeds of the house and there should be contracts soon....but we are still waiting on consent from bank! I assume the contracts being ready is irrelevant if there is still bo consent from the bank? I am a bit clueless about this whole thing!

We had the contracts a week after we went sale agreed. Still waiting on consent a year later.

missjuly

2013Lara wrote: »

We had the contracts a week after we went sale agreed. Still waiting on consent a year later.

Yeah thats exactly what I am afraid........mmm!! You poor thing waiting that long...any sign of progress? Did you sign the contracts?

2013Lara

missjuly wrote: »

Yeah thats exactly what I am afraid........mmm!! You poora thing waiting that long...any sign of progress? Did you sign the contracts?

Contracts are signed but not exchanged. They won't be until the consent comes in. Apparently it's on the way but who knows.