What should I do now

Kunala

Hello There

I would like to seek some advice regards to our current status. At present, me and my wife in process of buying a residential property.
Status is Sale Agreed. Bank evaluation done and bank released Loan offer validity 3 months from date of issue 20 Dec 2015 and
sent to my Solicitor. Waiting on contract papers from Vendor Solicitor.
So far so good.

Now when we checked with EA regards to possible Closing date, he came back to me and said that at present Vendor is not in a position
to move out of the property and cannot close deal till End of June/July 2016 ( Possible date not confirmed date yet, just assuming )

1) Now my problem is regards my current loan offer letter validity. If I need to wait till June/July 2016, my loan offer will expire
At this point what should I do ?
Can I ask bank to cancel current loan offer and wait till I find another property ? In that case do I need to submit reference letters and documentation once agian ?

2) If I withdrew from this current deal and find another property in mean time will bank issue new offer letter with out submitting reference documentation again
what exactly should be doing in here ?

3) Me and my wife - when we were in processes of mortgage applications with different banks, took Salary reference letters several times
in span of 2-3 months Will it be good to ask HR again and again for them letters.

3) We are in bit of rush to close this in next couple of before loan offer expires at this stage what will be best bets ?

4) Till date we haven't contacted Vendor directly, all comminications are via EA, so can I get in touch with Vendor directly and discuss for second
thought about near future closing date ? Will EA be oki with this, me contacting Vendor directly ?


Please advice.
Regards

April 73

Decide if you are willing to wait until June or July first. The vendor should have made this clear.
If you are willing to wait you could approach your bank & ask them to extend your loan offer as the closing will not be until July. Your solicitor could do this & it would carry more weight.

Kunala

If ask for extension via Solicitor now, will bank extends loan offer to 6 months or do I need send references again ?

MarkAnthony

Move on. A vendor in this situation is probably a time waster.

You HR department will have to suck it up, it's their job to ensure this paper is pushed around.

April 73

Kunala wrote: »

If ask for extension via Solicitor now, will bank extends loan offer to 6 months or do I need send references again ?

The bank may extend the offer but equally may require references again closer to the time of closing.

Tell the EA that the vendor should have made it clear when they accepted your offer that they wouldn't be ready to move out until June or July.
Your mortgage offer runs out at the end of March therefore you need to reach a compromise on the closing date.
Put the ball back in their court.

Water John

If the property particularly suits you, I would not give up on it yet, but I would be wary.

I don't think you get an extension. Its a reapplication, I think.
If you are dealing with a specific person in the bank, who has your file, approach them on the subject.

I would make direct contact with the vendor. This will give you a 'feel' of their situation. Are they waiting for the end of school year?
How do you know that they won't change their mind would be a big issue for me?

sami2015

For me the reason would be the biggie.... if it is something like not wanting to move until the end of the school year (or if they are building a new house and it won't be finished until the summer) you can still buy the house and let them rent the house from you until you move in during the summer....

One of my former colleagues bought a house like this and rented it out for 6/8 months years ago... I think that he actually took possession and moved in and they rented rooms from him since this was the era when stamp duty was very high for "investors" and he was afraid of the issues surrounding interest rates/tax bills..... it worked out very well for all concerned.....

Good luck,
sami

the_syco

Kunala wrote: »

Now when we checked with EA regards to possible Closing date, he came back to me and said that at present Vendor is not in a position to move out of the property and cannot close deal till End of June/July 2016 ( Possible date not confirmed date yet, just assuming )

TBH, it sounds like the vendor is waiting for someone else to move out of their home, so you may be waiting for someone completely different to move, whose timeframe you don't know about.

Find out the reason for the wait, and consider your options.

beveragelady

I was in a similar situation but it worked out ok. The solicitor sorted it out as part of the contract that the money would change hands before the mortgage offer expired and I would be the owner of the property while the vendor continued to live there. Because I couldn't afford to pay the rent and the mortgage at the same time, the vendor paid me rent equivalent to the mortgage repayments. It worked out neatly enough. I was willing to be patient and flexible because I really wanted the house. I had had concerns that the vendor may have been messing me around a bit with delaying tactics but this arrangement satisfied me that she was genuinely willing to sell.
Worth a shot!


Edit: If at all possible, try to establish a more direct channel of communication with the vendor. Many EAs are fine for showing you a house but useless at everything else.

davo10

The EA should have informed you during bidding process that deal could not close for 6-8 months. I suspect the EA didn't not know the vendor was going to do this as it looks bad for EA.

Decide if you want to wait but if it as me I would be insisting that vendor reduced price to reflect the extra rent that has to be paid by you until July. If they say no and you are not sure about the property, walk away because if the vendor doesn't find somewhere else or thinks s(he) will get a better offer in the summer, they won't hesitate to pull out.

MarkAnthony

beveragelady wrote: »

I was in a similar situation but it worked out ok. The solicitor sorted it out as part of the contract that the money would change hands before the mortgage offer expired and I would be the owner of the property while the vendor continued to live there. Because I couldn't afford to pay the rent and the mortgage at the same time, the vendor paid me rent equivalent to the mortgage repayments. It worked out neatly enough. I was willing to be patient and flexible because I really wanted the house. I had had concerns that the vendor may have been messing me around a bit with delaying tactics but this arrangement satisfied me that she was genuinely willing to sell.
Worth a shot!


Edit: If at all possible, try to establish a more direct channel of communication with the vendor. Many EAs are fine for showing you a house but useless at everything else.

Who was your mortgage provider? To my knowledge all residential Irish mortgages require vacant possession; a condition underwriters are very unlikely to move on.

beveragelady

MarkAnthony wrote: »

Who was your mortgage provider? To my knowledge all residential Irish mortgages require vacant possession; a condition underwriters are very unlikely to move on.

I'm with AIB. The vacant possession question never seems to have come up, now that I think about it.