Delays and problems exchanging

azkaban420

Hi all,

I've posted part of this on the seller's support thread but I'm in a really bad/unhappy place at the moment so please bear with me. We accepted an offer on our house in May, after having some difficulty selling/dropping price considerably/losing a buyer before.

It's a relatively small chain, us (moving into rented) our buyer, using cash to buy ours from the sale of their property to a FTB. We signed our contracts ready to exchange 3 weeks ago, but there is still no news from the FTB at the bottom of the chain...apparently our buyers are also ready to exchange on ours but still waiting for their FTB. Our solicitor has been proactively chasing, but there seems to be no sense of urgency from the rest/bottom of the chain. We keep getting told different things (my EA is also chasing) - three weeks ago it was just a local search outstanding, now apparently the FTB still hasn't got a mortgage approved as they want to see proof of his funds as he's placing a large deposit, plus a bank statement is missing. It's been going round in circles for weeks.

We were due to move into rented accom in a new city for our kids to start schools on 6th Sept. That's 2 weeks from now. I've lost the initial (family) property I was due to move into, and now I have to find somewhere fast. However, as I haven't exchanged, I don't want to expose myself to moving out/committing to a rented place and leaving my property empty with no idea of when we'll exchange/complete. I can't really afford to pay for two properties, but if I knew we'd exchanged, I'd feel more comfortable about this.

When we agreed our sale, this timeline was discussed at some length and was agreed...I know, and understand these things take time, but I feel so lost and stuck at the moment. I emailed my sol/EA last night to say if we don't exchange by Friday this week, then I will stay put and find a house to purchase, and move out when I'm ready to complete the chain that way, as there's no point uprooting everyone when we can't get there in time for schools (if that makes sense?).

My EA is livid as he was told on Friday everything was good to go, but then he's been told that several times by the other two solicitors along the course of the process.

My sol has suggested that something is not quite right with the FTB, there shouldn't be mortgage approval questions being raised this late in the day...he also recommended that we give them an ultimatum to exchange by Friday, or we pull out and put the house back on the market, and I tend to agree with him.

Am I being wrong or unreasonable, or can anyone else think of anything. I've been so strong throughout this process, but it's reduced me to tears once before and now today

Az

harz99

azkaban420 wrote: »

Hi all,

My sol has suggested that something is not quite right with the FTB, there shouldn't be mortgage approval questions being raised this late in the day...he also recommended that we give them an ultimatum to exchange by Friday, or we pull out and put the house back on the market, and I tend to agree with him.

Am I being wrong or unreasonable, or can anyone else think of anything. I've been so strong throughout this process, but it's reduced me to tears once before and now today

Az

Looks as though the FTB is having difficulty proving to the mortgage lender where the deposit has come from - money laundering regulations have made some lenders paranoid about such things.

I have every sympathy with you, and agree with your proposed action above, except that it might be better to allow a week from the day you give the ultimatum rather than this Friday.

The only other thought is your buyers - can they afford to do the deal without selling theirs first?

azkaban420

Thanks Harz99, no unfortunately they need the proceeds from their sale to purchase mine. I will relay the week's notice to my solicitor, he may well already build that into his letter to them.

Hate feeling so hopeless

Az

BornAtTheRightTime

I can only sympathise. I am going through something very similar. Accepted a low-ish offer in May after 3 weeks on the market as the buyer was chain free under a re-location. AFAIK their company uses a 3rd party company to buy their house which provides the funds to buy ours, with additional mortgage as they are trading up.

Initially they got the mortgage valuation done quickly, however things then slowed right down.

They delayed exchange by a month over a non-issue (our property is registered with the LR but the document detailing right-of-access wasn't, they insisted this be done despite having the original document). Our EA was very good at blaming us for the delay for not having the LR entry sorted.

Once this was sorted (and this is 3 months after offer acceptance) they then demanded a 3rd viewing to check they still want the house (!). Our EA said this was normal after such a long delay.

They then proceeded to pay the deposit by cheque, despite knowing we are frustrated over the delays. Our EA said it was unfortunate but not unusual and we would be exchanging immediately it cleared.

It now turns out they are holding onto their house for a year as their child is half-way through GCSEs and they cannot agree completion for another month as their solicitor is not sure they'll have the remaining funds for a few weeks. Our EA said he has no idea where the money is coming from and has even joked that it's drug-money, and that their solicitor didn't want to enquire too closely in case he came up against Money Laundering Regulations.

I am now waiting for the EA to call back to confirm that they have the money and can exchange tomorrow and complete within 10 days, or it's back on the market.

My EA clearly has a sense of humour (which is just as well as I seem to have lost mine along the way) but if the funds did turn out to be linked to money laundering would we end up losing it all?! I don't want to stir up my solicitor on what is bound to be a silly joke, but perhaps I should?

Edit to add: We are moving into rented accommodation temporarily as it's a job move outside the area.

azkaban420

BornAtTheRightTime, it's a horrible situation to be in isn't it? You psych yourself up to this point and then it can come crashing down around you. And yes, I know that until you exchange, nothing is confirmed, but it's still hard not being able to plan or do anything in the meantime.

Az

NEH

Oh Az so sorry to hear this and that you've lost your family property-presumably they jsut couldn't hold on any longer...

I think if it was me and you really can't afford two properties then maybe the time it to set an ultimatum and stick to it...It is very concerning that the mortgage approval is coming up as an issue at this stage.....

I wish i could suggest more practical solutions but renting is such a stressful business that you don't really want all that as well as having an empty place on your hands....

azkaban420

Thanks NEH, I've actually had a chat with my DD's school to ask if they wouldn't mind being a bit flexible/understanding with our current situation. Anything within catchment is too expensive and asks for minimum 6 mth rental term, which is just not do-able, so I've asked the school if they don't mind me trying to crash in with other family/friends on the short-term even if out of area, so that at least we don't lose the admission. They will ask the q, and may agree....if so I'll be a bit more relaxed about where I can rent short-term, just so that we get into the area, and schools started.

Still leaves the headache of having an empty property but if the rental side is sorted, then it's a bit less stressful, as we can still achieve the goal of moving in time. At worst case, I will have to re-market and try to sell an empty property, but it's easier to do that when I'm not paying extortionate rental fees.

I dunno, am trying my hardest to find ways around the problem, but will see.

Az

aw69

I know this thread is a few weeks old but I just found it and it made me better about my situation. Apologies for seeing something positive in others misfortune but its just nice to know that others are in a similar situation.

Three months ago I accepted an offer from a buyer who turned out to be a buy-to-let landlord. I had knocked down the price of my property to get a quick sale, having had one sale fall through, but what has actually happened is the buyer is in no hurry to exchange. I'm stuck in this situation where every week my estate agent says that he thinks I'll exchange within the week and then nothing happens. Obviously the buyer doesn't need my house as a home and therefore I get the feeling he is going to keep stringing me along until he makes up his mind about whether he really wants to buy my house or not. My solicitor has said that I should be careful about giving him an ultimatum otherwise he may just pull out.

Does anyone have any suggestions about how to move the sale forward? Or should I just give him a deadline of exchange by x otherwise the property goes back on the market?

Thanks for any advice.
AW

azkaban420

Hi AW, no worries, as it happens, I'm no closer to exchanging anyway and am tearing my hair out. My EA tells me the same thing, oh we may exchange this week/next week, and now I think they're also fed up of making excuses and have told the EA etc down the chain that we may pull the plug on this deal. Fed up of being strung along, and feel so helpless.

I just wish someone would call and say it's all systems go and we're ready to exchange today....huh like that's gonna happens

Az

aw69

Az, I completely sympathise with you. At the moment the whole selling process seems so unfair. This is the second time I've accepted an offer only to have the buyer mess about for months on end before changing their mind. There needs to be a change in the system so that people are actually obliged to buy / sell once an offer has been accepted.

Although my buyer hasn't officially pulled out I've put my house back on the market as the EA said I need to have a back-up plan!! I hope everything works out for you.

AW

azkaban420

My EA has also agreed to the same, as a back-up....fingers crossed for us both!

Az