Signed Letter of Offer and then Lost my Job. How do I recover?

superhelpful · 17-02-2022 1:44am #1

After years of saving I bought a house by myself from plans back in November 2021. The current due completion date is June 2022.

I signed on the dotted line for both the house and the letter of offer, all done and dusted and I just had to wait. Hooray for me...

Except this morning, I got my notice that the company I work for is shutting down (I knew things weren't great but not this bad) and most likely we will all be made redundant within a week. This is definitely happening.

I am flattened. Low. Numb. I do not want to lose this house.

The good news is I work in an industry where getting a new job with the same salary can be a quick turnaround and I may already have a job lined up. So I won't be out of work or have any gaps in my employment, but I'm worried that the bank will refuse me on drawdown until probabtion passes and I don't know where that leaves me.

Assuming the house completes in June, can I keep the builder waiting 3 months until I complete probation?

Asides from that I'm lost on what strategy I can take. Do I have any recourse here at all?

TL;DR

Bought a house from plans and then got made redundant
Have a new job but theres a probation of 6 months
Worried the bank won't let me draw down

Shelga · 17-02-2022 1:43pm

Hi OP, really sorry this is happening to you, it sounds incredibly stressful.

Presume you have engaged the services of a solicitor to complete the sale, might they be best positioned to advise you on this? I really don’t know what the position of the bank or the developers would be, particularly as this is a new build.

Irishcrx · 17-02-2022 1:53pm

First off sorry to hear this I'm sure its incredibly stressful and awful thing to happen.

If it's a new build I presume you have the 10% deposit for the builder in cash and everything else lined up , I'd talk to the broker or bank directly and explain the situation to them - some of them are more flexible than you think , however the issue is going to be the underwriter on draw down they double check everything before releasing funds and you'll be asked to sign a disclaimer stating all items to be true , be very careful on this.

Likely , they will want a new job past 6 month's probation and you'll have to start the process again.

What I would do is look at the employment market , depending on your industry most markets are employee led if you can find a good role with a good employer I would explain the situation to them and ask they sign off your probation early and provide letter - I've done this for people before who I felt were going to work out long term and needed it by cutting their probation early.

Good luck.

zg3409 · 17-02-2022 2:26pm

Does your new job have probation period? How long? Some companies it's 11 months.

I would not buy a house without a permanent happy job in the area. What if you hate new job and want to move 100 miles away?

You should have to notify bank your circumstances have changed. When you go to draw down the money it's likely they will ask for newer most recent pay slips from your employer. Some unscrupulous people might fake these and say nothing. It's not a good idea to obtain a mortgage by deception, particularly if it's likely you may not be able to make some payments in the first few years.

In terms of actions, I would contact solicitor. They will basically say you can't go ahead, and try to claw back deposit. Often deposits are refundable. Note your solicitor will need to sign off on everything, if they know if any issue they cannot sign, they are putting their job on the line.

An option might be to contact mortgage provider. If you do have a job in an industry where pay is high and unemployment is unheard of, they may waive the requirements. But even if they do, on the day if draw down another mortgage person will review everything, and may at last minute say no go. This is very common where they ask for something extra.

In terms of signed on dotted line, usually there are get out clauses such as subject to mortgage approval etc.

There are valid reasons mortgage providers don't want to lend to someone in a new job, I am sorry it's unlikely to work out unless you are past the probation period and 6 months. Most new builds are running late so you might scrape through, be honest and talk to mortgage provider and solicitor.

Amias · 17-02-2022 2:34pm

OP. Speak to your Solicitor for advice. Do not approach your adviser before speaking to your solicitor. This is the perfect excuse for the bank to pull your application.

3DataModem · 17-02-2022 3:10pm

There is no upside for you telling the bank, so don't. I was told my job was made made redundant in the middle of a mortgage application. I completed the application, got the offer letter, and closed 5 months later, despite being in a way less paying job (startup).

Some banks ask for payslips before drawdown, my bank didn't (UB) thankfully.

I'd have a chat with the builder, he may be able to delay payment / completion schedule. But stay the hell away from telling the bank unless you really absolutely have to.

houseyhouse · 17-02-2022 3:46pm

Ouch! I would be very stressed in your shoes but it might work out fine. My bank (ICS) said probation was ok so long as there was no gap in employment between previous and current job. They did request payslips on drawdown though and I think all banks did during Covid. I wouldn’t tell the bank your situation but you could have a friend ring up as a would-be customer to find or what their policy on probation is.

But first thing is to focus on getting a new job ASAP. The bank just wants to know you’ll be able to pay back their money.

spaceHopper · 17-02-2022 4:26pm

Say nothing take the redundancy, get new job, if the job market is hot tell the employer you can be fired with in the first two years anyway so a short or no probation period

houseyhouse · 17-02-2022 9:44pm

https://www.boards.ie/discussion/comment/118647586#Comment_118647586

Just FYI, it’s the first 1 year. After that the Unfair Dismissals Act kick in.

Cuddlesworth · 18-02-2022 10:13am

Honestly, if the estimated completion date is June it's probably August/September when it happens if not later.

endofrainbow · 19-02-2022 3:42pm

Would the redundancy payment be of any value in a bargaining tool ?

superhelpful · 20-02-2022 4:02pm

First off, thank you everyone for your kind words and super advice! Without mincing words, this situation is indeed poor. But having some advice is really comforting and gives me hope.

Some updates to add color to the situation:

The redundancy hasn't happened yet but it is definitely happening. I will get nothing bar the minimum.

I don't just have 1 new job offer, I have a few potentials and am trying to negotiate with them on probation periods without seeming like a basket case.

My solicitor doesn't have any direct advice other than to get a more stable job asap and hope that the build is delayed by a month or two.

There is no mortgage refusal clause in my contract, so the builder holds the cards here. I either find a way to draw down somehow (via delay or shorter probation) or I lose my deposit.

@houseyhouse Huzzah! That's actually the most promising thing I've heard all day. A bank that isn't as strict about probations would be the silver bullet! I will definitely be calling ICS first thing Monday morning.

My one saving grace has been my employability and the market is hot for people looking.

@Shelga Solicitors advice wasn't immediate. The best advice he gave was to get the new job started asap so my probation would end quickly. And to avoid talking with the builders or bank at all until we know more.

@Irishcrx Thanks for the kind words! Indeed the 10% is down along with HTB scheme. I did talk briefly to a broker about a 'hypothetical' situation and they were quick to say there is a slim chance that the underwriters could sign off early probation if the new job was really good (which so far looks promising).

@zg3409 The industry standard is 6 months for me. Really more of a formality as thankfully the market is good and its been easy to get new jobs and most of them are almost entirely remote. I definitely don't want to deceive anyone, that seems like a recipe for disaster and my solicitor would agree.

I have no mortgage refusal clause. There is a slim chance my solicitor will be able to clawback something but we both think the stronger position would be to try negotiate with the new job for shorter probation than negotiate with the builder or banks.

Although I have slim hope that 1 of the many banks underwriters would look at my situation and give me a break. My one saving grace is a healthy salary and consistent 10+ years employment.

@endofrainbow Unfortunately the redundancy payment will be the bear minimum and not really a bargaining chip for me.

@Amias Ditto! First person I called was the solicitor. Finding flexibility in the new job or the brokers is the best next step. The brokers I've spoken to, I've only asked them 'hypothetical' questions.

@3DataModem Alright, noted! Although I am almost certain they will ask for updated payslips. If you don't mind my asking; what year did you draw down?

The builder so far has been incredibly stubborn on much smaller details. So he would be the last person I'd approach about it.

Although my solicitor did say that he "could" approach their solicitors if we had plenty of time. It would nearly be easier for the solicitors to give me the extension of 2 months than try to get it back on the market.

@spaceHopper I wish I had your stones! :D You're right of course but I think if I go to the bank with that logic then they will probably shoo me away with some talk of "not in our policy"

@Cuddlesworth That would be ideal. Its already been delayed from April/May to June. So perhaps theres longer delays on the cards.. Never thought I'd say it but a delay in the house would be perfect.

So the current POA:

* Contact ICS to see if they will be flexible with probation periods

* Try to negotiate a shorter probation period in a new job. 3 months is far better than 6.

* If that all fails, move job and hope that the build is delayed past the probation period and into August/September

3DataModem · 20-02-2022 5:35pm

To answer your question: I drew down in October 2018. 10 days before my offer expired.

houseyhouse · 20-02-2022 5:41pm

Just to add, a colleague told me that BOI let her draw down on probation but she had to provide a letter from the employer saying that they were happy with her performance.

Pistachios & cream · 20-02-2022 10:41pm

We drew down with my BOI while my husband was still on probation. He had gotten a letter of comfort from his supervisor stating that it was going well and there was no reason he wouldn’t pass it.

road_high · 20-02-2022 10:49pm

The main snag I’d see is if the bank are requesting a current payslip on final drawdown. Do you know if that’s one of their things? My previous mortgage they didn’t, but a very recent one they did. That was ICS. Far as I know once drawdown is complete any of us could lose our jobs and it wouldn’t matter anymore (so long as you got a new job to pay the mortgage of course!).

if you could complete the process prior to being let go (presume there’ll be a notice period) and you had a few more payslips to come in then you’d be well covered.

pauliebdub · 22-02-2022 7:44pm

You might be overthinking the probation issue with the new job, unless you are hopelessly incompetent you should have no issue.

celt262 · 22-02-2022 10:57pm

I got my employer to say my probation was 3 months instead of 6 which worked for me.

Emma2019 · 23-02-2022 10:08am

Really bad form of your solicitor to not have put in a subject to finance clause.

Hope it gets sorted for you.

lasitpant19 · 14-09-2022 5:55pm

@superhelpful just wanted to check were you able to sort out and get the house ?

superhelpful · 14-09-2022 6:19pm

https://www.boards.ie/discussion/comment/119618495#Comment_119618495

Getting the keys any day now. I'm estimating to be in sometime early October

Viva La Gloria · 14-09-2022 8:33pm

https://www.boards.ie/discussion/comment/119618595#Comment_119618595

This is such great news! So glad it all worked out for you.

superhelpful · 02-12-2022 12:14pm

I decided to come back to this now that thing have settled and leave a message of hope for anyone going through something similar.

This was without a doubt one of the biggest trials of my life. I lost so much and grayed so fast that you'd swear I aged 5 years in teh last 12 months. But here I am, sitting in my living room with safety and security.

Losing that job ended up being one of the best things to happen to me. My new job has been a dream. Ultimately it was a blessing in disguise. Its like a toxic relationship where you don't realize how bad it was until you're out.

I got the keys to my new home last week, In the end I actually passed my new probation by the time the builder finished. Never doubt the amount of time builders, ESB and Irish Water will take...

While I'm in a good position now, that was not a journey I would ever wish on someone else. There were a lot of lessons learned and I would like to leave some key nuggets of advice for anyone reading and hope that they can land on their feet like I did.

A good broker is worth their weight in gold. I went with EBS and the agent in charge of my application may as well have been an angel.
The banks have a lot more flexibility than they advertise. Probation exemptions exist if you can prove you're "hireable" and go with the right lender. Get multiple approvals from different banks if you can.
If you can, fight for a "No loan" clause in your contract. Some cowboy builders solicitors are not entertaining them at the moment because of the market. Unless you're in a protected job, don't chance it. Fight to get that clause included. Its your safety net

Big thanks to all the users in this thread you helped me along. Although I didn't need to probation exemption in the end, I never would have known it existed.

you2008 · 02-12-2022 2:21pm

https://www.boards.ie/discussion/comment/118676861#Comment_118676861

Totally agree, The loan clause was issued by the law of society long time ago and how is possible he or she is not aware of it?

And your solicitor should advice you DON’T SIGN it if cowboy builders solicitors are not entertaining them.

herbalplants · 02-12-2022 10:58pm

Ah delighted for you!

Signed Letter of Offer and then Lost my Job. How do I recover?

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