Solicitor Bankruptcy Search

Need2Know_2

Should we just be kissing goodbye to our new home then?

timmyt

you are lucky in one sense. thank goodness you have not exchanged! nearly all lawyers do bankruptcy post-exchnage, as the search comes with a 'priority period' giving a window of protection to allow you to complete wthout a bankruptcy entry being placed agains your name and the mortgage monies are safe to be lent.

Pre-exchnage, well that will indeed delay things while the lender is informed as the solicitor is duty bound to do this....but only with your consent.

Some layers send the search results to their clients which is negligent in my view as you only need to sign to say it is not you. The lawyer should just go onto the Insolv website and/or cross check dates of birth.

If yhou lied on your application then you might face criminal charges, but if you have never been asked (and why the lawyer did not at least ask in their opening paperwork is another annoyance for them)

Need2Know_2

We told our mortgage broker that we were discharged bankrupts at the application stage. It was only out of curiosity when we mentioned the bankruptcy search to him that he became worried, and informed us he had not put it on the application.
Should we inform the solicitor tomorrow? Im guessing we are obligated too and ask for the earch to be done asap?? Im guessing that we will lose the mortgage as the evedence that we have found tonight say the mortgage lender does not ever lend to bankrupts, past or present.

timmyt

your broker is the one to ask on all counts, but he surely must have had that question asked of him in thepapers somewhere?

yes, tell your lawyer, but do not apporach your lender direct - not that ou say you were - and let the two professionals see what can be done.

if it were me acting for you, then i would have to ask for your permission to tell the lender and seek their consent to proceed.

if the lawyer can phrase it all in a good light then maybe....but with mortgages bing so hard to get, I am worried for you...but thank goodness you did not exchnage, that would have meant loss of your despoit. it is bad enough where you are now in terms of being out of pocket but it could be worse.

but....keep calm and see what happens..it is not all lost until your lender knows...but let your lawyer do he talking for you....keep the posts coming, as happy to give a view.

Need2Know_2

Thankyou, my Husband is ringing our solicitor first thing this morning to talk with them. Neither of us slept last night, its like you mentioned Timmy, we could have lost thousands...!!!! I just dont get were this broker is coming from in not disclosing the bankruptcy, surely he knew there would be a problem further down the line?

All we can do is hope, but its not looking very favorable for us is it. We have given notice on our rented place so best get looking for somewehere else to live... this is all a nightmare!

seabright

timmyt wrote: »

if it were me acting for you, then i would have to ask for your permission to tell the lender and seek their consent to proceed.

Your lawyer will have to tell your lender - the lawyer is acting for both you and the lender and to not tell them would be a conflict of interests.

Let us know how it goes.

GDB2222

I hope it all goes well for you, but if you do lose out over this I suggest that you make a formal complaint to your broker. From what you have said, I think the Financial Ombudsman Service would be bound to take the view that the broker acted wrongly and that he should compensate you for any loss.

He wouldn't be bound to compensate you for not getting a mortgage, but you've been to a lot of expense and you've given notice on your present place, and you wouldn't have taken those steps without expecting a mortgage offer.

FraudBuster

We told our mortgage broker that we were discharged bankrupts at the application stage.

Some reading:

Lie-to-Buy Mortgage Brokers & the FSA.

http://forums.moneysavingexpert.com/showthread.html?t=965771&highlight=

silvercar

GDB2222 wrote: »

I hope it all goes well for you, but if you do lose out over this I suggest that you make a formal complaint to your broker. From what you have said, I think the Financial Ombudsman Service would be bound to take the view that the broker acted wrongly and that he should compensate you for any loss.

He wouldn't be bound to compensate you for not getting a mortgage, but you've been to a lot of expense and you've given notice on your present place, and you wouldn't have taken those steps without expecting a mortgage offer.

I agree.

My question to the broker would be why he didn't put an answer to that question and why he thought the ommission wouldn't be spotted.

silvercar

Why not post on the mortgage board, see if anyone knows of a lender who will consider a recently discharged bankrupt.