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Seller in mortgage arrears

BarmyBubba
BarmyBubba Posts: 122 Forumite
in House buying, renting & selling
Morning

I was at my solicitors yesterday morning to sign contracts for the exchange. My solicitor advised me that it should complete Tuesday/Wednesday next week.

Thank god.

Anyway, just had a text from the cousin of the seller who is looking after things for him as the seller now lives abroad. He said that his solicitor is possibly going to stop the sale as the seller has not paid the amount overdue on the mortgage. Surely the solicitor will pay off any mortgage arreas when the money is transfered to him from my solicitor? Or is that not possible?
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Comments

  • UK007BullDog
    UK007BullDog Posts: 2,607 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Say house is worth 100,000 and youare paying 100,000. Sellers mortgage is £100,000 but as he has not paid it is now £102,000, so the transaction is £2000 short. The solicitor will not pay the money which is missing. Only the seller can, if the seller is abroad.......

    This is a very simplyfied example but its the bare bones.

    HTH
  • BarmyBubba
    BarmyBubba Posts: 122 Forumite
    Bloodyhell, looks like the whole deal is going to fall through.
  • silvercar
    silvercar Posts: 50,781 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    We had similar issues with our seller. It just took a few days longer than expected for the seller's solicitor to get a statement from the lender as to the total amount they needed to remove the charge on the property. In most cases this will be less than the property value and the sale still proceeds.

    The only problems that can occur is when either the lender is owed more than the sale price or when the seller is committing to another purchase and the arreas won't leave enough money to do that. Here the solicitor may want a statement from the seller (as opposed to the cousin) stating they are happy with the repayment amount.
    I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • BarmyBubba
    BarmyBubba Posts: 122 Forumite
    Just found a bit more to it.

    His mortgage is with Northern Rock, he also has a loan with them.

    Because he has moved to Thailand, and has no fixed address in the UK they are insisting the loan is paid off as well at the same time as the mortgage is paid off.

    The bloke does not have the money to pay off both, only the mortgage. So they are refusing to allowing the sale of the house to go through.

    The sellers solicitor is trying to get the sellers cousin as the registered address but they are waiting for a reply.
  • silvercar
    silvercar Posts: 50,781 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    The bloke does not have the money to pay off both, only the mortgage. So they are refusing to allowing the sale of the house to go through

    So he must have a high percentage loan to value (or a large loan). Or it could be he hasn't given the solicitor / cousin agreement to clear the loan in this way.
    The sellers solicitor is trying to get the sellers cousin as the registered address but they are waiting for a reply.

    After or before they've told Northern Rock he lives in Thailand!
    I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • Mikeyorks
    Mikeyorks Posts: 10,380 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    silvercar wrote:
    So he must have a high percentage loan to value (or a large loan

    ................ or a secured loan? (Surnames not Glitter .. by any chance?)
    If you want to test the depth of the water .........don't use both feet !
  • BarmyBubba
    BarmyBubba Posts: 122 Forumite
    Its not a loan secured on the house. And Northern Rock know he has moved to Thailand. And no, he isnt Gary.
  • silvercar
    silvercar Posts: 50,781 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    Deep in the terms and conditions of a mortgage, lenders can reserve the right to use the charge over the property as security for any other loan you may have with the same lender. Looks like this is what Northern Rock are doing.
    I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • BarmyBubba
    BarmyBubba Posts: 122 Forumite
    But what can the seller do if he has already moved abroad? Worst case scenario what will happen?
  • regularsaver1
    regularsaver1 Posts: 4,930 Forumite
    sell will not be agreed
This discussion has been closed.
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