Internal audit threatening completion after exchange

mortgagehelpneeded

We have today been informed that due toa random internal audit it is highly likely that the mortgage offer we had previously accepted will not go thorugh on our completion date ( 15th Oct ).
We are now in a position whereby myelf, wife & 3 children ( youngest 12 days ) maybe homeless on Friday. Is there anything we can do ???:mad:

GMS

What is an audit likely to show that wasn't disclosed in the application?

mortgagehelpneeded

The Audit won't show anything that wasn't previously disclosed. It is the timescale to carry out the audit that is causing the problem...:mad: They have said it is higly unlikely to be concluded before Friday !!!
Can't understand how an inetrnal audit could end up with us being in breach of contract with our sellers :mad:

GMS

Have you spoken to a manager?

Make clear it is a purchase which will fall down and cost you money. I would get straight on the phone first thing tomorrow. Ask why it has been selected for audit too. If it is a random selection they can pick another to avoid delay.

Has your solicitor requested funds yet?

mortgagehelpneeded

Will be on to the 1st thing...

Solicitor has requested funds & spoke to them this morning & everything was fine & ready to go... 2 hours later this all came about...

Solicitor has tried talking to them but can't speak to anybody that can explain what is happening & when it will be concluded...

They have told us repeatedly that this is a randon audit as part of their inetrnal procedures & it is not personal :mad: It is very personal to us !!!!

milliebear00001

Can I ask who the lender is? This my biggest nightmare!

LillythePink

I can't offer any advice apart from give them hell on the phone first thing tomorrow!

However, what are Internal Audit playing at, picking a mortgage to review two days before completion and then having the cheek to say that they may not complete the review in time for it to go through!

That is pure madness

Jenniefour

This happened to my buyers when I sold recently - a couple of days before exchange. Which is somewhat different from after exchange and two days before completion. Lenders seem to be doing this quite a lot - they need to be seen to be compliant with regs to the letter. As well as doing all of above get ready to give them all the evidence of income again and so on as quickly as possible. And I would inform the EA right away - and get your sol to talk to theirs. I think people handle these unexpected things better if they're in the know asap. Perhaps let them know that the plan is still to complete as arranged and you're letting them know, as a matter of courtesy, in the event it takes a little longer. What will be key here re time is the documents they ask for getting to them double quick.

What irritated me when I sold was the buyers didn't understand the need for urgency about producing all the documentation and messed around, forgetting things and so on - so it took a couple of weeks - which made it immensely irritating for me as well as losing some confidence in their intentions, to the point I was about to pull out of the deal. But I was not cross about the audit, it wasn't their fault - they just happened to get picked in the random audit and there wasn't a thing anyone could do to prevent it.

Good luck.

Jenniefour

Mad world we live in indeed. And forgot to say - while you're on the phone to them ask them to tell you exactly what documentation they need. Get an agreement with you that they will contact you immediately and directly should they need anything else.

herbiesjp

Lots of lenders are doing retrospective checks/audits as well, after completion!

Jenniefour

herbiesjp wrote: »

Lots of lenders are doing retrospective checks/audits as well, after completion!

Didn't know that ! What on earth happens if a significant irregularity is found then?

My EA did tell me to think myself lucky - apparently the FSA do their own audit on mortgages the lender has approved anytime up to completion and they go through absolutely everything including the valuation and survey. And it can take months.