Buying a receivers property using a mortgage

SeanKeat

Hi, I am in the process of trying to purchase an apartment. It is a receivers type sale. My solicitor has received contracts from the receivers solicitor. My solicitor contacted my bank lender and according to my solicitor my bank declined the mortgage on basis of the property being a receiver's sale. We have a good deposit going in on this purchase and have good credit, so the only issue is back to the property itself. My solicitor sent qualifications to my bank which they rejected (I don't know what these are). I am not very happy with my solicitor as he has not explained the process to me and treats my questions with indifference. I am thinking about engaging a new solicitor to look at this (the property is well priced for Dublin).The sellers have threatened to put the property back on the market unless we exchange contracts soon. Does anyone else have experience in this process, is there any point in proceeding further? Thank you.

Claw Hammer

Receiver sale contracts are generally un-mortgageable. Your solicitor is just doing his job,
He is not running a conveyancing school.

Victor

"the property is well priced for Dublin" = this is a lemon.

shimadzu

Look at other banks or brokers for the mortgage, property in receivership is purchased regulary with the assistance of a mortgage.

One of the major issues when purchasing a house that's in receivership is that the receiver will do the bare minimum to get the sale through they will generally not answer questions put to them by your solicitor and will only provide documentation that is easily available to them, as a result your solicitor will have extra work to do.

The issue you are most likely facing is that your solicitor has not been able to get information the bank require to release the mortgage. You need your solicitor to find out what that was. Once you know what is missing your solicitor needs to put pressure on the seller to rectify it if the want the sale to proceed.

Happened to me before, I purchased a property near the sea one of the questions asked by the bank was had the property ever been flooded, the receiver stated "not to their knowledge" the bank wanted a more direct answer and the receiver refused to provide it initially. Eventually a mini report detailing the properties elevation and a review of tidal/flooding data for the area satisfied the banks request and the purchase was able to proceed.