Buying a repossession

SiBlood_2

Hi, Im new to using this site and so far have found it excellent. Just after people's opinions and ideas really. We are also first time buyers.

I have managed to purchase a repossession that was once listed as a house worth £210k, for £145k. However I haven't yet received the keys. I thought that everything was dealt with and we were just waiting for the keys. The 10% deposit has been paid to the solicitor and we thought great. The completion date is next Tuesday.

However yesterday the mortgage company told me via phone that there was a bit of a 'glitch'. I thought that it was all complete however they said that I had missed 1 credit card payment. I have only ever in my life missed 1 and we thought that the date for payment was the 18th and instead it was the 16th. In months since we have paid on time. There is about £300 left to pay off and to be honest I'm not the type of person to take credit. This has started me sweating as basically if we don't get the mortgage stuff through to the solicitors by Thursday we may lose our deposit?? I am starting to panic.

We both earn solid wages of 25k+, and the deposit is paid.....I just want the keys in my hand

Of course the hard work of sorting stuff out will start when we move in but I hope we move in!!!

Opinions and ideas welcome!!!

Si.

Premier_2

Unfortunately, there have been a number of cases posted on this forum recently of purchasers having their mortgage offers withdrawn before completion, often with no reason.

If the company won't loan you the money, all you can do to try and save the deal is try and obtain a mortgage elsewhere.
If you fail to complete next Tuesday, which is unfortunately likely if the current company won't lend you the money, then you will be given 14 days notice to complete - so that's 3 weeks from today, which should be long enough to get another mortgage secured.

You may incur charges for failing to complete on time, e.g. interest, but at least you won't lose the deposit.

You need a definitive statement from the current lender asap what their position is. You should also tell your solicitor and probably the vendor too - they always will try to save a sale if possible and keeping in dialogue with them will only help.

Even if it goes a few days over the 3 weeks I mentioned earlier to be in a position to complete, the vendor will still probably accept this. Fortunately as it's a repo and so in the hand of the bank, they would always wish to sell the property, even if a few days late, than just pocket the 10% deposit that a private seller may elect to do.

Unfortunately, if you can't get another loan, you will forfeit the 10% deposit, and may become liable for more costs too. Lets not hope that's the case.

Good luck!

SiBlood_2

Apparently the details are now in the hands of the Regional Manager! I have only missed 1 credit card payment and paid 2 days later! I have no other credit to my name.

After numerous phone calls - they said that someone will get in touch before the end of the day. If first time buyers like myself who have no bad credit history, are on decent wages and have paid the full deposit in cash, cannot get a mortgage then what hope for the future of this country who are not in such a fortunate position.

Still waiting and hoping its good news - I just wish someone would explain whats happening!!?!?!?

Thanks for your ongoing advice.

Si.

hethmar

Hi, you wouldnt get the keys until after the completion any way. Have you actually exchanged contracts?

It would be ridiculous if they cancelled the mortgage offer for such a petty reason. Do give them a ring and ask to speak to the Regional Manager about this. Its madness.

Robert_Sterling_3

I did not think that a solicitor would pay the deposit until he had proof that the mortgage had been approved.
I may be wrong.

Premier_2

Robert_Sterling wrote: »

I did not think that a solicitor would pay the deposit until he had proof that the mortgage had been approved.
I may be wrong.

That's true, but what appears to have happened here, as has happened to others, is the mortgage was approved (so allowing exchange) but was then retracted prior to completion.

In this case, it seems like the late payment issue only just came to light and now the "computer says no!"
However, with the Regional Manager now reviewing the case, hopefully he'll take a more balanced approach once he has reviewed the details.

SiBlood_2

After ongoing discussions and pulling my hair out over this, the mortgage company have now got back to me and have said that things are looking positive! Tomorrow will hopefully see some movement on this. A whole day for a regional manager to look at such a small issue!!! Arrghh.

What happened was the mortgage looked to be going through smoothly and after consultation with them they told me it would be issued the day after we exchanged. We had to exchange on that day otherwise we would have more than likely have lost the repossession. Obviously I know different now!

So hopefully we will see something positive tomorrow - otherwise a local bridge will be looked for!

Si.

hethmar

Good luck

SiBlood_2

Todays Update :

Called at 10.30 this morning and spoke to the branch manager - who told me that we would PROBABLY hear something by the end of the day! However she also reiterated that it was out of the branches hands.

At 3 o'clock, I got the call to say that it had been approved by the regional manager. When asked what the issues were I was told that because I only have the one credit card and hardly use it, the one missed payment raised an issue with evidence for credit!! So basically in my mind if you have credit cards left, right and centre instead of being careful its not a problem!!! Laugh I nearly bought a round of beer!

So, she added that we still have to receive the rubber stamp from the underwriters, however there is a queue of 1200 applications at the moment!! But she said, don't worry they are open tomorrow as well. Oh and to top it off the reason it has taken so long is that the regional manager hadn't checked her emails as she was in meetings!!!!!!!!!!!!! Anyway so far so good.

Completion date was Tuesday - - - Just received a call from the solicitors ---
Brilliant guy BTW! He said that we are more than likely going to miss completion date of Tuesday, but should make completion on Thursday or Friday as he will have to complete a notice for completion. He said that we will have to pay some interest however. Question is does anyone know roughly how much extra we will have to pay in interest - the house price is £145,000, and the mortgage is £130,500. Opinions welcomed!!

Getting less stressed, but need to sort my mam's tax out now - so may need help with that!

Thanks again,

Simon.

Robert_Sterling_3

And we lived happily ever after. :T

whathavewedone

Ask your solicitor to find out how much the interest is likely to be. It shouldn't be that much. When I bought my first flat (mortgage of 80k) my solicitors exchanged contracts with completion set for that day when they hadn't yet had the signed transfer from the seller. It was about 30 quid I think - we were meant to compete on Friday but couldn't do it until Monday.

In my case I got the money back from the solicitors eventually as they hadn't told me they didn't have the transfer when they rang me to check I was happy for them to exchange and complete simultaneously on the day.

Obviously in your case it isn't your solicitor's fault so you'll have to pay it yourself but I doubt it will be huge money. Anyway, give your solicitor a call he should be able to tell you.