Bank preventing sale of apartment - what to do?

phil1nj

I'm looking for some advice here regarding a property I was hoping to purchase.

I looked at an apartment back in October and made an offer to the seller that I believed was fair. The seller informed me that he would need to discuss the offer with the bank as there was an issue with negative equity. After three weeks of waiting, the seller came back (through the estate agent) and informed me that the bank had accepted my offer and that the sale could proceed.

Based on this information, I engaged the services of a solicitor,had a valuation completed and applied for a mortgage through a broker. My booking deposit was paid and the sale process started.

After 10 weeks of little or no communication from anyone I contacted my solicitor to find out what the status of the sale was. My solicitor informed me that the sale had been blocked and that contracts could not be issued.

I contacted the estate agent and have been told that the bank are no longer happy with my offer (??) despite saying that they were back in October. This now has left me in a limbo as I have no comeback regarding the costs I've incurred and the time I've lost.

The seller has a meeting with the bank in 2 weeks but no other information has been passed on to me about what the possible outcome of this meeting will be.

Just trying to figure out what my next move should be.

MouseTail

I would wait for the meeting, if the outcome does not give the go ahead, I would walk away, you have no idea of the negotiations going in in the background between the vendor and the bank. This could take many months to be resolved if at all. Your booking deposit is fully refundable, but not your legal or valuation fees.

Oral Surgeon

phil1nj wrote: »

I'm looking for some advice here regarding a property I was hoping to purchase.

I looked at an apartment back in October and made an offer to the seller that I believed was fair. The seller informed me that he would need to discuss the offer with the bank as there was an issue with negative equity. After three weeks of waiting, the seller came back (through the estate agent) and informed me that the bank had accepted my offer and that the sale could proceed.

Based on this information, I engaged the services of a solicitor,had a valuation completed and applied for a mortgage through a broker. My booking deposit was paid and the sale process started.

After 10 weeks of little or no communication from anyone I contacted my solicitor to find out what the status of the sale was. My solicitor informed me that the sale had been blocked and that contracts could not be issued.

I contacted the estate agent and have been told that the bank are no longer happy with my offer (??) despite saying that they were back in October. This now has left me in a limbo as I have no comeback regarding the costs I've incurred and the time I've lost.

The seller has a meeting with the bank in 2 weeks but no other information has been passed on to me about what the possible outcome of this meeting will be.

Just trying to figure out what my next move should be.

I'd get my booking deposit back asap and move on. No one signed contracts so both parties can walk away at this stage. It's unfortunate that you have spent money but....
The solicitor and valuer will likely take it all into consideration on your next potential purchase.

If they are messers, move on asap, don't flog the dead horse.

username123

All you've lost is the valuation, you can get the booking deposit back and your solicitor hadn't done any work to be paid for (including not even bothering to let you know that the sale had been blocked).

I'd walk away and move on to a less troublesome property.

the_syco

phil1nj wrote: »

After 10 weeks of little or no communication from anyone I contacted my solicitor to find out what the status of the sale was. My solicitor informed me that the sale had been blocked and that contracts could not be issued.

I contacted the estate agent and have been told that the bank are no longer happy with my offer (??) despite saying that they were back in October. This now has left me in a limbo as I have no comeback regarding the costs I've incurred and the time I've lost.

A bit shoddy that you had to chase your solicitor up to find out that info.

IMO, walk away. It sounds like whatever deal the seller made with the bank (possible deal for the shortfall if the seller is in neg eq) has fallen through, and the bank now wants more.

spaceHopper

What is the EA saying has he seen this before.

I'd see what else he has on his books that you my like - that will motivate the sell.

Also if this is a bouble and price go back down then the bank will be on the hook for the difference between your agreed price and for what ever the seller gets in a couple of months to a year.

You could also use that to your advantage tell the EA, you want your deposit back now - the seller walks into the meeting with no sale and the bank will have cost them the sale if it ever goes to court that will not go well for the bank. It's happened before.

Now make your offer again subject to banks written accpetance of offer by date x.