Mortgage Advice needed, completion collapse?

axisofunity

Hi everyone

Newbie here, I was hoping some more seasoned experts can advise on my current situation. If you can, I'll send you some e-beers (:beer: )

Situation:

Today I was meant to exchange and complete on my purchase. However due to the Estate Agent not advertising the property locally in the newspapers (It's a repossession) the exchange and completion collapsed today. They had told me they had done this, but the agent who 'did' was not there and his colleague could find no evidence and is I quote "very very worried".

The problem is that my lawyers drew down the mortgage (confirmed) and I now have a mortgage debt in my name, but no asset. The seller's solicitor acting on behalf of another bank refuses to exchange now until they see this proof of advertisement.

It all seems a bit late in the day for me for them to be asking this, but it's their right and they have a legal obligation to get the best price for the evicted former owner.

However, it's obvious that the Estate agent has not taken due care and attention.

Questions:

i) What is my position with regard to the mortgage which I now have which doesn't have an asset? At this time, we believe the money is with the seller's solicitors who I presume should refund it back to my solicitors on Monday morning pending getting this advertisement out....

ii) Do I have legal grounds against the Estate Agent / The seller, I am paying interest as well as substantial other costs incurred now. I realise that in some cases, 'chains' break and this is 'natural' and not a legal event. However I believe the advertisement of the property, which I was told was done, is something that the 'due care and attention' clause should apply. Since they have breached it causing me financial loss (not to mention the fact I have a mortgage in my name on a property I may now not get??!? :eek: )


iii) Any other considerations.


Your help, advice, or even sympathy would be warmly welcome.

I go to see the Estate Agent's Area Director tomorrow. What should I be telling her?

ps. I realise that if they do go out to advertise someone could offer more, which might screw things up even more, *sigh*

getmore4less

Get the mortgage payment sent back pronto.

The lender is not going to be happy.

Ian_Griffiths_Halifax

Your Solicitor will still have the funds. I'd be surprised if he/she hasn't already sent the funds back to the lender. You'll not be charged for the days that they had the funds if he does that. He'll simply request the funds again when everything is ready to go through.

Your problem in the mean time is, as you've spotted, that it will now get advertised as 'We have received an offer of £X on A 10 ABC Street, any higher offers to be made to etc etc'. So yes somebody else could offer more.

I don't think you'll have a complaint against the incompetent Estate Agent, but the Lender who repossessed the house might! If you incurr any costs from your Solicitor, I guess you may have a chance of claiming off the EA. Speak to your Solicitor and ask him what he's doing about this.

bubblesmoney

EA is representing the seller. so isnt the issue about failing to advertise the sale of a repocessed property the fault of the seller. isnt there a process where the sellers solicitor confirms to buyers solicitor that all necessary paper work is ready for exchange/completion. if the sellers solicitor/ea misrepresented facts about an advertisement being done without it being done then arent they liable for any expenses incurred by buyer who has ended up with mortgage loan without property. obviously the sellers solicitor discovered this late and pulled the plug but isnt the EA responsible for any financial losses. after all the EA is being paid for a service by the seller so the seller can take them to task, but i dont know how the buyer can show a service deficiency and claim off the EA since contracts werent exchanged.

best of luck OP

kaysmith87

My solicitor refused to draw funds down for my mortgage until i'd exchanged and everything was ready to go.

Gangstabird

Your solicitor has a care of duty or whatever it's called (too much vodka) to send it back immediatly. It would be illegal for them to give you the money or to hold it if it's not going to be spent on the house. It has to go through a client account which the sols would hold separately from their own accounts although they get the interest on it. It would not be in your solicitors interest to keep hold of the funds. Speak to them in the morning. They should take the cost for this as they are the legal representative and if they didn't repay are getting the interest payments on this money between now & monday which if I remember rightly, will be paid back as drawdown was between solicitors.

You will be fine. don't worry.

Gangstabird

It also sounds like the sols involved in this were not on the ball at all. There would have been communication between yours & the sellers.

I doubt if you will get any compensation as contracts have not been exchanged, but I really can't see that you will be charged for drawdown as your sols will be responsible for this.

It's a shame and I can't believe your sols did this, but it DOES happen occasionally.