vendor in negative equity - what next?

ab7167

Well, we are viewing another house Monday afternoon, fingers crossed. High hopes for this one, so we shall see.

Is it considered unethical to have 2 offers on houses at the same time? We would like to ensure that our offer on any new place is accepted before we irrevocably abandon our current offer. Obviously I am not talking about days, in fact the EA's involved have offices opposite each other, so we would sign for one offer and then cross the street and formally withdraw the other - an overlap of 15 minutes max, I would say...

BitterAndTwisted

You're 36 weeks preggers, why on earth are you even thinking about ethics when you should be decorating a flaming nursery?

If it isn't illegal just do it

princeofpounds

No, it's not unethical as you have no idea if one will be accepted or not. It would be unethical to run two agreed sales concurrently, but to be honest there is no legal obligation until exchange anyway and this is business.

DVardysShadow

ab7167 wrote: »

Is it considered unethical to have 2 offers on houses at the same time? We would like to ensure that our offer on any new place is accepted before we irrevocably abandon our current offer. Obviously I am not talking about days, in fact the EA's involved have offices opposite each other, so we would sign for one offer and then cross the street and formally withdraw the other - an overlap of 15 minutes max, I would say...

At 15 minutes it is OK. It is also ethical to have both sales running concurrently, provided both vendors know that you will pull out of one sale. You are in a position where you would be well founded to tell the current vendor that this is what you would do, but you are unlikely to get another offer more than provisionally accepted on those terms - they would continue to market until you pulled out of the first sale.

But, act in haste, repent at leisure. You are so close to your date that you do not have a reasonable expectation of finding another property and completing.

silvercar

We had similar. Our sellers had cheap internet conveyancers, second charge on the property from day 1 and then a third charge appeared the week before exchange. Sellers wanted to use deposit for rental, which was refused.

We fought through it. We told the vendors that we had to exchange that week or our buyers mortgage offer would be eexpired by completion (true). Once the sellers realised that they had to make this work or the sale would collapse and probably lead to them being repo'd they pulled out the stops and exchanged in the nick of time.

Your best bet would be to speak to the sellers direct if you can. They are the ones with the most to lose, they need to beg, borrow or steal (maybe not steal) to make up the shortfall, so they need to be pushed to get on with it.

MissMoneypenny

ab7167 wrote: »

Have been discussing with OH, and I think we are minded to leave them to it, to be honest. Unfortunatley - I feel for them - they are moving out next week and apparently have already signed a rental contract, but we haven't exchanged, so surely they can't have gone for a rental on the basis of an offer? Nothing is final until exchange, surely? They are not going to be able to afford mortgage and rental if they are in this much financial difficulties...

I wonder if they are going to declare themselves bankrupt? If you look on the bankruptcy board, they advise peole to get a rental before they go bankrupt.

getmore4less

Do not let them have any money, deposits are optional and even when provided shoud be ringfenced and not used by the vendor for anything.

If they are likely to be insolvent and go bankrupt you have little chance of recovering monies lost.

GDB2222

At 36 weeks pregnant, I would just relax and forget this. It's too much hassle. The baby could come early. There's too much to go wrong.

ab7167

plot thickens - apparently there is not only not enough money to cover all the debts, they have already defaulted on the IVA and possibly the 2nd charge. But we keep getting quoted "confidentiality" and "data protection" - I'm about to hand over significant sums of money - surely I can expect more information about what we may be getting into?

Solicitor (ours) says we have more chance of winning the lottery than completing by the 12th Feb, so we have decided that even if we go for this house, we will be delaying until after baby is born - if it is as late as they come, then there will be a 7 week delay. However, if they are this close (as we suspect) to the brink of bankcruptcy, this may well push them over the edge. If we carried on would we then be dealing with the Courts? I assume this would add another layer of delay?

Am struggling with guilt for these poor people who have found themselves in a truly horrible situation - have to keep reminding myself that I cannot afford to feel guilt tripped into making their life easier at the expense of my family. And am going for pregnant lady pamper day on Friday to take my mind off :-)

Further complications - we loved the house we saw today, more suitable for both current and future needs, so we may well be pulling out anyway if tomorrows offer on new house is accepted. Am not looking forward to seeing EA, she is scary bossy women who likes to shout at me... and when I tell her we are pulling out, I think she will go ballistic. Is it wrong as a grown woman to be scared of a shouty EA? (I should add that in my professional career I work in construction and am more than capable of holding my own with mucky !!!! builders!)

DVardysShadow

You have no reason whatsoever to feel guilty. The people in question could not deliver the house they were selling. You have reason to be annoyed at them for wasting your time and money.

It isn't wrong for you to be scared of the EA. But you shouldn't be. Tell you what, try and get her to shout! Have a laugh and deffo post here if she does have a shout - the more shouting you can get out of her and you post here the better!