Vendors pull out AFTER exchange of contract

Desperate_Housewife_2-2 · 13 July 2009 at 4:50PM

Just read through this thread with a feeling of panic that this sort of thing can actually happen! I hope you get it sorted welshwoofs.

just a point...the bank or building society who lends the mortgage is surely the 'owner' until the mortgage is paid, wher do they stand with ownership? has your mortgage kicked in yet on this property or is it still being paid by the vendors?

Good luck and I'll be watching this thread hoping you get a swift and satisfactory outcome

hostman · 13 July 2009 at 4:59PM

Desperate_Housewife wrote: »

Just read through this thread with a feeling of panic that this sort of thing can actually happen! I hope you get it sorted welshwoofs.

just a point...the bank or building society who lends the mortgage is surely the 'owner' until the mortgage is paid, wher do they stand with ownership? has your mortgage kicked in yet on this property or is it still being paid by the vendors?

Good luck and I'll be watching this thread hoping you get a swift and satisfactory outcome

The mortgage company are not owners, but they have a "charge" over the property. I.e. a finanical interest.

GDB2222 · 13 July 2009 at 5:03PM

Chinkle wrote: »

It's pure speculation that the OP's vendor is in negative equity - just because their house is now worth less than they paid for it. They may have put down a hefty deposit, or been overpaying thus reducing LTV.

Absolutely agree, but ofc they may instead have MEW'd at the top of the market. I'm just saying that the OP really needs to find out how the vendor stands financially before pouring a LARGE amount of money into legal fees, renting somewhere locally to live, and putting their lives on hold for a year or two whilst this case trundles through the court system.

At the moment, this is a crisis, but suing someone who turns out to be penniless would turn it into a disaster.

freezspirit · 13 July 2009 at 5:11PM

I'm sure there was a programme on tv years ago about property chains and one of the chains something similar happened. One in the chain at the top wouldn't leave the house or something so all the others in the chain got together to sort of force/bribe (I can't remember which) them out of the house.

Can someone clarify something thats puzzling me on this matter. When my brother bought his house before he could sign the contract he had to transfer money to his solicitor and once he signed it was transfers to the sellers. So in this case they exchange contracts and were going to move in. Would that mean the seller at the moment is basically a squatter? Or have they not got up to the stage of money transfer?

hostman · 13 July 2009 at 5:13PM

freezspirit wrote: »

I'm sure there was a programme on tv years ago about property chains and one of the chains something similar happened. One in the chain at the top wouldn't leave the house or something so all the others in the chain got together to sort of force/bribe (I can't remember which) them out of the house.

Can someone clarify something thats puzzling me on this matter. When my brother bought his house before he could sign the contract he had to transfer money to his solicitor and once he signed it was transfers to the sellers. So in this case they exchange contracts and were going to move in. Would that mean the seller at the moment is basically a squatter? Or have they not got up to the stage of money transfer?

The money will be with their solicitor.

ciano125 · 13 July 2009 at 5:38PM

I'd be so tempted to post a card through the letter box saying "Good luck in your new home".:D

silvercar · 13 July 2009 at 5:43PM

Even the most careless solicitor would have ensured there was enough money to clear the mortgage before exchanging.

This will all be about the mortgage deal they have now and what deal they can get.

mystic_trev · 13 July 2009 at 5:48PM

I'd love to know what the Vendor's Solicitor has told them. I doubt they've minced their words, as they must know how much trouble their Client is in.

Good luck Welshwoofs. Sue the @rse off the arrogant so and so's.

clutton_2 · 13 July 2009 at 5:48PM

greedy sods

wearside_2 · 13 July 2009 at 6:08PM

I have just read through this thread and am astounded/amazed that someone could do this the day before the completion date. House buying is stressful when things go well but to be in your position Welshwoofs, I can not even try to imagine what you are going through.

Good luck and keep us informed.

Perhaps one of the TV stations may be interested in this situation for one of their property or consumer programmes?

Vendors pull out AFTER exchange of contract

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