Sale of repossessed property put on hold by AIB

biloutte

Hi guys,

I have been on sale agreed on a property for about 4 months, and have been told on the 8th of January, while still waiting for the contract to be sent out, that the sale had been put on hold by the Bank (AIB).
We were told we would get news as to whether they would proceed with the sale or not at the end of January, but we still did not hear anything from them. No contracts have been exchanged.

I was wondering if anyone had been experiencing the same? What do you think should be our next move?

Thanks a lot

Cheers
Bil

JimmyMW

biloutte wrote: »

Hi guys,

I have been on sale agreed on a property for about 4 months, and have been told on the 8th of January, while still waiting for the contract to be sent out, that the sale had been put on hold by the Bank (AIB).
We were told we would get news as to whether they would proceed with the sale or not at the end of January, but we still did not hear anything from them. No contracts have been exchanged.

I was wondering if anyone had been experiencing the same? What do you think should be our next move?

Thanks a lot

Cheers
Bil

That’s a tough situation to be in, I was on tender hooks back in 2012/13 myself waiting to get contracts from AIB on a repossessed property, it took 10 months just to get the contracts and that was with absolutely no demands from my side, purchased as seen warts and all. In saying all that it worked out very well financially in the end. If I were you I would start looking again and see what’s out there, meanwhile I would leave things progress away with AIB and chase them until you get some answers. I think there is no advantage in pulling out of a sale at this stage until you are sale agreed on another property or until AIB pulls out of the sale.

biloutte

Thanks for the reply Jimmy.
We started looking around again - you are right there is no point cancelling this before we get sale agreed on another property anyway.

The real issue we have here is not really that it takes time (we were expecting the process to take a lot of time anyway) but more that we have been on hold for almost two months now and still don't have a clue of what's happening..

Cheers
Bil

Heldige

Hi Bil,

I think I am in the same situation. I am sale agreed since September 2015 for a AIB repossessed property. Before to receive the contracts I had to wait the land registry map approval from November till January. Finally I received the contracts, signed and returned to AIB solicitor at the end of January. In their last letter, received the 10th of March, they state that "due to an internal review within the bank we are not able to sign the contracts for a number of weeks".
We are close to the end of March and no idea when I will get the house keys. I hope to receive good news from you and that you have already close the sale.

All the best
Heldige

biloutte

Hi Heldige,

Very sad to hear it's happening to you as well!
Nothing moved on our side since last time, no news and no idea what's happening.

We have lodged a complaint at the beginning of March and are expecting an answer shortly (in the next few days - I will keep you posted).
If the answer is not satisfactory, we will go to the Ombudsman.

Have a nice week end!
Bil

Heldige

Hi Bil, thank for replaying and sorry to hear you are still waiting for them. My story has got to an end..unfortunately. I hoped till the last day even if I knew that things were not going well. Here briefly what happen since my message sent to you:
The day after, 21st of March, I sent an email (through Board.ie) to AIB, received the same day a message back from an agent and gave me the phone number of AIB Asset Management, which I rang. I spoke to a guy, honest guy, and told me the truth "..we cannot sign the contrats, in 2 or 3 weeks we will let you know", and then added "we have to withdraw the property from the market..for the moment it is not for sale!.. a receiver has been appointed, which is KPMG". 22nd of March, I called the KPMG reception and asked to talk to property for sale, and spoke to a guy. Him as well did not hide anything (I think). He told me that AIB is not in the position to sign contracts, and that the property is not for sale and more likely to be withdrawn. He promised me an email, so I waited again patiently for his email for days.
In the meantime I went to talk and say everything to my solicitor, which I think she could not believe at what I was telling her, and I did not have proof for my words. She called the AIB solicitor and said " the house is still for sale, there is a delay but we want to sell".
29th of March, KPMG agent replies and tells me:
Hi Margherita

Unfortunately, I have been instructed by the bank to remove this property from the market this morning. I am not in a position to put any timeline on whether or not the property will be put back on the market.

If a deposit was paid, the agents will refund this.

Apologies for the inconvenience caused.

My heart sank! I could barely breath..I was in shock. Months and months left waiting, money spent, left with nothing, my dream home gone, left with the despair to start all over again.
Tough to get back on my feets.. but here I am, calling for property viewings again. The bad side of this story has been the waist of my precious time. After 6 months house prices have increased and now I have to pay from my pocket 40K or 50K more, a life time savings, when
I could have closed the sale last year and pay less! This story hit me really hard. I am a first time buyer but I am not 25, far from this number, and I have to find a family home quickly, my time is running out, more a wait and lower is the loan.

All the best
Heldige

Nua

I'm in the same boat, just not with AIB. Went sale agreed in September 2015 but the bank, KBC, didn't 'consent to sell' until Christmas Eve - I had never even heard there was a consent to sell stage between sale agreed & signing contracts! Now everything is on hold due to an internal review process & I have no idea will I get to complete at all. Horrible being in limbo, estate agent won't do anything to help either & solicitor's hands are tied . . . has anyone had positive outcome from similar situation? I need some hope to grasp onto!!

jd

If there is a management company, and there are service charge arrears, they probably won't facilitate the sale until arrears are paid in full.

Heldige

Hi Nua,

Sorry to hear you are in a limbo situation. Just my little advice here, if your sale agreed for a bank repossessed property be wary,
it is not normal to let you wait for months. Try to found out the truth, make few calls like a did, to put to an end this torment.
Like I said I hoped for the best until I had to face reality. I know it is tough, but do not waist your time. I hope everything will work out for you!

All the best
Heldige

Nua

jd wrote: »

If there is a management company, and there are service charge arrears, they probably won't facilitate the sale until arrears are paid in full.

That's been specified in the contract from the vendor, outstanding charges won't be paid until after the sale completes! My solicitor said it wasn't unheard of but not normal practice either The chain is long & complicated between vendor solicitor/receiver/bank so I don't even know who to ring - thanks for the replies tho, I'll start bracing myself for disappointment

jd

Nua wrote:

That's been specified in the contract from the vendor, outstanding charges won't be paid until after the sale completes!

I know for a fact my OMC won't care about such a contract, and will insist on all arrears being paid in full before they facilitate transfer for the bank/receiver.

Nua

jd wrote: »

I know for a fact my OMC won't care about such a contract, and will insist on all arrears being paid in full before they facilitate transfer for the bank/receiver.

OMC? My solicitor tried to get the arrears assigned to the vendor's solicitor instead of the receiver but had no luck. Have written assurance that receiver will take responsibility of arrears but we weren't able to include a timescale of when after completion they would be obliged to pay them . . . Now I have the feeling it'll never get that far in any case

jd

OMC is owners' management company

Heldige

Hi all,

I forgot to mention in my previous message that the receiver said that there were about 150 properties in the same situation. For all people concerned, I think this need to be said.

Ms2011

Hopefully I can provide a ray of hope.
We found our dream house in Oct 2013, it was a bank repossession by PTSB. Went sale agreed in Nov 2013. Heard nothing further so contacted the estate agent in February 2014 but he had no real answers so by June 2014 I went over his head to his boss in their parent company & found out the bank were back tracking on whether to sell or not. I was starting to lose hope, it was only because we were in no hurry to move & the fact we knew we would never get as much property for our money that we stuck it out. But by the time 12 months had passed I was just about ready to give up & move on. Low and behold Dec 2014 we got the call that the bank were ready to sell & the wheels were put in motion. Sale closed & we got the keys in April 2015.
It took us 17 months in total, most of it spent in limbo, but it did come good for us in the end.
I suppose it all depends on your personal circumstances & if you can wait it out.

liam7831

Not worth the hassle, in most cases they are withdrawn from Sale. I met the asking for a house in Lucan owned by AIB, they then took it off the market. As prices are now well recovered i doubt they will sell it for a price maybe 6- 12 months old as it would be undervalued.

allyl3000

We went sale agreed on an AIB repossesed property in November 2015.House being sold by real estate alliance on behalf of AIB.We signed contracts before Christmas and were given a date for close of sale as the second week in Feb.However this date came and went and we found out on the 29th of March 2016 that the house was being withdrawn from the market by AIB. Apparently AIB had overcharged on tracker mortgage interest rates and the house has to be offered back to the original owner!to say we were annoyed is an undestatement.it should have been a straightforward sale as our mortgage approval was with aib and the house in question was being sold by aib.

Heldige

Hi Ally,

Thanks. I still do not know why AIB has withdrawn the property I supposed to buy (and many hundreds more) from the market, but maybe
the AIB overcharged tracker interest rates could be the reason. I would love to know the truth!

m'lady

This seems to be happening a lot, I also think another common occurance is that the vendors have been told they have a consentual sale by the banks but when things move along the banks then retract that and pass it to a receiver..

I would advise anyone trying to buy to wait until contracts have been sent before paying out for a survey etc, thankfully my solicitor advised me against surveying a property until then, otherwise I'd have been out of pocket.

biloutte

Hi guys,

All these answers are not really recomforting unfortunately!

We have filled a complaint with AIB and got the most evasive answer 8 weeks later 'the Bank is currently reviewing its disposal strategy; we are not able to provide a time when this review will be completed. Therefore, at present, we cannot proceed with the sale of this property'

We are now in contact with the ombudsman to make things move...

I will let you know how it goes!

ChampagnePop

biloutte wrote: »

Hi guys,

All these answers are not really recomforting unfortunately!

We have filled a complaint with AIB and got the most evasive answer 8 weeks later 'the Bank is currently reviewing its disposal strategy; we are not able to provide a time when this review will be completed. Therefore, at present, we cannot proceed with the sale of this property'

We are now in contact with the ombudsman to make things move...

I will let you know how it goes!

Are the back under any obligation to sell singular properties? Do banks have a different set of rules to follow compared to an average private seller?

biloutte

They are not; the only thing i am asking for is timely and honest communication, which I did not get so far.
Also, this is not an isolated event which illustrates a strategy that is definitely not playing in taxpayers favor.

ChampagnePop

biloutte wrote: »

They are not; the only thing i am asking for is timely and honest communication, which I did not get so far.
Also, this is not an isolated event which illustrates a strategy that is definitely not playing in taxpayers favor.

Banks responsibility should be to make sure they never need a bail out from the tax payer, not sell you house

biloutte

ChampagnePop wrote: »

Banks responsibility should be to make sure they never need a bail out from the tax payer, not sell you house

Turned out well for not needing a bailout didnt it?
So here we are, they needed a bailout, and now they're using it to inflate a property bubble!

Happy days!

spaceHopper

My reading of that is that they are taking the house off the market, get your booking deposit back and keep looking. By any chance were you getting a mortgage from another bank besides AIB?

biloutte

Hi,

Yes I am getting my mortgage with Ulster, even though I am currently an AIB customer.
Do you think that could be part of their logic?

Cheers

dbagman

Not liking this thread. Have just gone sale agreed on a BOI repo.was hoping sale would go through quicker due to not needing to wait for occupants to move out and bank needing the property off their books and back earning interest for them. Is this a common occurance?? I ain't got months and months to wait

Jet Black

I went sale agreed with KBC the second week in January and only got the keys last week. I was the same as you thinking it won't take long, I had everything in place, great solicitor and the house was unoccupied. The only major delays that I could have avoided was the underwriters requested additional info in January from me but the mortgage advisor didn't know. It wasted two weeks.

Here's a rough time line of how it went.

11 Jan - sale agreed
11 Jan - contact my bank to tell them
13 Jan - complete application
14 Jan - Send booking deposit
18 Jan - Arrange survey
30 Jan - Survey done

1 Feb - Contact bank with details of survey
11 Feb - Solicitor raising pre contact queries.
1 Feb to 30 Feb - Have meeting with bank/outstanding docs complete.

3 Mar - No reply from pre contact queries, re submitted
11 Mar - Some pre contact queries answered. Meet solicitor
16 Mar - Pay remaining deposit
21 Mar - Queries rasied re contact with my bank
23 Mar - Bank reply, bank give OK. Solicitors warns about no loan approval clause
30 Mar - Agree to sign contracts

Both solicitors were on holidays for 1-2 weeks.

22 Apr - Due to complete. Pay solicitors fees
28 Apr - Request funds from bank

2 May - Receive funds
4 May - Complete and get keys

sadie1502

We too have big on a repossessed house only this week. Do they all pose problems repossessed houses or do some run smoothly? What is the average wait time on buying a house?

Villa05

ChampagnePop wrote:

Banks responsibility should be to make sure they never need a bail out from the tax payer, not sell you house

While buying in late 2013/2014 we came across quiet a few bank repossessions all empty. Estate agents involved advised us against pursuing them as they said the banks were time wasting and only testing the market.

In an area with a housing shortage, these homes are still empty. Banks should be viewed for what they are and that is wasteful parasites. They should have been killed off when we had the chance and start fresh

Criminal to bail them out

spaceHopper

biloutte wrote: »

Hi,

Yes I am getting my mortgage with Ulster, even though I am currently an AIB customer.
Do you think that could be part of their logic?

Cheers

Yes, they might be more inclined to sell it to you if it comes off their books as a bad debit and goes back on as an asset. Think about it lets say you offered 400K with deposit of 58K (FTB Rules) and borrowed 343K. If the owner owed 400K their balance sheet improves by 742K and you have a loan office inside the bank working for you.

Jomoin

Hi, any more updates on this? I think there are many people who are kept in darkness. So how can we react so that there wont be any such miseries in future.
Regards

Felixia

We are in the same situation with Bank of Ireland. We signed contracts for a house and these were sent to BOI's solicitors, only to be told three weeks later that the bank had put the sale on hold, giving the reason that the bank are under review for a number of properties and this was one of them. Still no word three weeks on.
I've also heard from an estate agent of another property in the area being taken off the market by the bank while they wait for the property prices to rise.

Would be very interested to hear about other people's experiences on how best to approach this and save someone all this hassle in the future.

TheDoc

Heldige wrote: »

Hi Ally,

Thanks. I still do not know why AIB has withdrawn the property I supposed to buy (and many hundreds more) from the market, but maybe
the AIB overcharged tracker interest rates could be the reason. I would love to know the truth!

That and I would imagine withdrawing to then relist at a higher price, or bundle off in a portfolio for better profits.

Obviously banks would prefer to sell in bulk rather then individually.

I'd be getting in touch with your local elected TD to raise this issue, seems to be commonplace with AIB especially. Abnormally delaying contracts and not being upfront who actually owns/manages the asset.

IF I'm not mistaken AIB are state owned essentially now, and there is enough TD's in the Dail now who are pushing to take state owned banks to task for their slack practice. Nothing grabs the headlines more then the banks withdrawing sales from families to have them sold off in bulk abroad.

Knowing three people who went through hoops buying a house that was owned by a bank, I probably wouldn't bother myself, or if I did I'd want transparency and clear timelines up front. Always surprised people let these things go on and on and on.

As in most cases, the people who have lost out here are those who were told sale agreed, and now are back into the market after the banks withdrew, looking at 50k+ on prices.

TheDoc

Felixia wrote: »

We are in the same situation with Bank of Ireland. We signed contracts for a house and these were sent to BOI's solicitors, only to be told three weeks later that the bank had put the sale on hold, giving the reason that the bank are under review for a number of properties and this was one of them. Still no word three weeks on.
I've also heard from an estate agent of another property in the area being taken off the market by the bank while they wait for the property prices to rise.

Would be very interested to hear about other people's experiences on how best to approach this and save someone all this hassle in the future.

I'm always puzzled by what exactly YOUR solicitor is doing in this instance. You have a contract signed, your sale agreed.

I'd be looking for some concrete timelines from the bank, advising that you will consider the contract null en void by X date if they do not proceed with the transfer of the asset, and at such time you will seek a full refund of your deposit and move on.

Really its confusing. I know buying a house here is absolutely amateur stuff in how long it takes, but most people have a solicitor. And for some reason just accept that these things take time, and in a case like this, that someone can just withdraw from a contract when they feel like.

Buyers solicitors need to start earning their keep.

If I signed a contract in my workplace for a vendor provision and they withdrew or put it on hold, I'd be ensuring they get some pretty strict demands on timescales, plus they would be liable for penalties.

While your hanging around there, prices are rising and your losing out on other properties you could be acquiring.

TheDoc

Jomoin wrote: »

Hi, any more updates on this? I think there are many people who are kept in darkness. So how can we react so that there wont be any such miseries in future.
Regards

Raise this with your local TD. The housing crisis is a readline issue with this current Dail. And with a minority government, opposition TD's are perfectly capable of getting legislation passed without Government approval.

Most of the big banks are state owned at this point with the state having a majority shareholding, and most of the bank CEO's get called into committees and put to task. Granted its been with kid gloves so far, this DAil will be much more visceral.

So I'd raise it with your local elected TD. They will have the means and the ways to make noise about it and find out the specifics. And if it turns out banks withdrawing sales to bundle them together to portfolio sales and transfers, it will be a pretty big deal and cause a pretty big stir.

And to be honest its the most likely thing. Banks hate selling assets like this individually, they much prefer bundling them and selling multiple ones. And they normally go abroad.

4ensic15

TheDoc wrote: »

I'm always puzzled by what exactly YOUR solicitor is doing in this instance. You have a contract signed, your sale agreed.

.

Until the other side sign a contract and return it there is no contract. Nothing a solicitor can do to force it along except make phone calls and write letters.

BoatMad

TheDoc wrote: »

I'm always puzzled by what exactly YOUR solicitor is doing in this instance. You have a contract signed, your sale agreed.

I'd be looking for some concrete timelines from the bank, advising that you will consider the contract null en void by X date if they do not proceed with the transfer of the asset, and at such time you will seek a full refund of your deposit and move on.

Really its confusing. I know buying a house here is absolutely amateur stuff in how long it takes, but most people have a solicitor. And for some reason just accept that these things take time, and in a case like this, that someone can just withdraw from a contract when they feel like.

Buyers solicitors need to start earning their keep.

If I signed a contract in my workplace for a vendor provision and they withdrew or put it on hold, I'd be ensuring they get some pretty strict demands on timescales, plus they would be liable for penalties.

While your hanging around there, prices are rising and your losing out on other properties you could be acquiring.

There is no contract , sale agreed means nothing. Happened to me too. Bid place , sale agreed , KBS withdrew house from market. Still unoccupied 18 months later

saabsaab

Similar situation, sale agreed last September 15, negative equity but told that there was no trouble with release letter from the bank, EBS (I'm told) still waiting on bank release letter after many calls etc.. ,All other aspects cleared. Probably foolish waiting any longer as bank will want more as prices have risen since.

TheDoc

BoatMad wrote: »

There is no contract , sale agreed means nothing. Happened to me too. Bid place , sale agreed , KBS withdrew house from market. Still unoccupied 18 months later

Poster I was quoting mentioned they had signed contracts. I'm assuming they are contracts that were drawn up by the bank and sent for review and signature. ?

4ensic15

TheDoc wrote: »

Poster I was quoting mentioned they had signed contracts. I'm assuming they are contracts that were drawn up by the bank and sent for review and signature. ?

Wrong. The contracts are sent by the bank, purchaser signs and returns. No contract until the bank signs.

Dubdad25

Hi guys. In a very similar situation. Been waiting since January which is not as long as most on here but we have just signed contracts yesterday. The house has been without electricity for approx 2 years and when I phoned ESB they said reconnection could take 12 weeks. That's in other 3 months even before we get the keys. Lots of work needs doing on the property. Replumbing etc. And costs of reconnection of approx 2000. Anyone know if this can be done faster? I mean all the electrical equipment is still there but realise it needs Certs etc. Any info appreciated. Thanks. I feel everyone's pain on here too.

Ms2011

Dubdad25 wrote: »

Hi guys. In a very similar situation. Been waiting since January which is not as long as most on here but we have just signed contracts yesterday. The house has been without electricity for approx 2 years and when I phoned ESB they said reconnection could take 12 weeks. That's in other 3 months even before we get the keys. Lots of work needs doing on the property. Replumbing etc. And costs of reconnection of approx 2000. Anyone know if this can be done faster? I mean all the electrical equipment is still there but realise it needs Certs etc. Any info appreciated. Thanks. I feel everyone's pain on here too.

The house I bought had been unoccupied for 5 years. I was quoted all those crazy prices to get the electrity turned back on but in the end it only cost €75 to get an electrician to provide us with a cert & €100 for the ESB to reconnect the electricity.

Marcusm

Talk to your solicitors; a recent Court of Appeal case has thrown doubt on the ability/jurisdiction of the Circuit Court to deal with repossessions (suggesting they need to be dealt with in the High Court). Accordingly, in many cases, the banks are on notice that they may not have lawfully responses see the property and may not be able to sell it. As most "repossessions" are actually voluntary hand acme rather than actual court orders, this might only impact a small number of sales.

newman10

Marcusm wrote: »

Talk to your solicitors; a recent Court of Appeal case has thrown doubt on the ability/jurisdiction of the Circuit Court to deal with repossessions (suggesting they need to be dealt with in the High Court). Accordingly, in many cases, the banks are on notice that they may not have lawfully responses see the property and may not be able to sell it. As most "repossessions" are actually voluntary hand acme rather than actual court orders, this might only impact a small number of sales.

Link here

http://www.independent.ie/irish-news/courts/seizure-of-11000-homes-hit-by-ruling-34921527.html

Frreedd

Same situation here. I had been renting a property for years which was repossessed by AIB in March 2015. I managed to go sale agreed in November 2015. January 2016 I was contacted by my solicitor to sign the contracts and was informed that the sale should close February 2016. Weeks and months went by. AIB going through "internal reviews". Been dealing with too many parties to really understand anything. EBS, AIB, solicitors, people appointed by god knows who... Contacted lawyers, a few solicitors, financial ombudsman. All saying the same thing, nothing can be done as the vendor have not signed the contracts and therefore have no obligation. March 2017, 2 years after it all started, well over a year after I signed the contracts, I am still a tenant of the property. I come home from a horrible day at work to find a note advising me I am being evicted and the locks would be changed. I am left distressed, annoyed, lost for word. I would strongly advise against being a repossessed property.

I wonder if anyone had any luck contacting their local TD?

4ensic15

Frreedd wrote: »

Same situation here. I had been renting a property for years which was repossessed by AIB in March 2015. I managed to go sale agreed in November 2015. January 2016 I was contacted by my solicitor to sign the contracts and was informed that the sale should close February 2016. Weeks and months went by. AIB going through "internal reviews". Been dealing with too many parties to really understand anything. EBS, AIB, solicitors, people appointed by god knows who... Contacted lawyers, a few solicitors, financial ombudsman. All saying the same thing, nothing can be done as the vendor have not signed the contracts and therefore have no obligation. March 2017, 2 years after it all started, well over a year after I signed the contracts, I am still a tenant of the property. I come home from a horrible day at work to find a note advising me I am being evicted and the locks would be changed. I am left distressed, annoyed, lost for word. I would strongly advise against being a repossessed property.

I wonder if anyone had any luck contacting their local TD?

Complain to the RTb about an invalid notice of termination.