Is anyone that help me feel any better??

Oddgy

Afternoon Ladies and Gents,

Just to put you in the picture, we are in a small chain. Our buyers are FTB and the vendors of the house we are buying will be moving in with family until their New Build is ready.

Anyhow You may remember...?? that our Venders Sols sent a letter to us asking for a Sameday Exchange and Completion as their was no deposit being passed up from our Buyers.

Upon investigating, it appears our buyers are having a 115% loan to pay off other stuff etc, (which is one reason we have had nitemares with the survey....but thats another story) so therefore have not got a deposit.

Now as we are in the middle, i guess our deposit along with our Money that our lender is lending us doesnt get issued to our venders until completion day, so i think i am right in saying that it is down to our buyers as they are the start of the chain why this problem has occured?? Am I?

Well - we were a bit concerned with a same day exchange and completion, as all i can think of is that if they have some problem on the day its supposed to happen, or second thoughts or something like that - we will be half way loading our stuff on the removal van, the same as our vendors, but our buyers as they are FTB wont have this commitment and wont cause them as much trouble as it would cause us if they were to pull the plug.

Anyhow - our Sols asked our Buyers Sols if our buyers would put up a deposit, not giving them a figure, asking them to put a figue that they could afford as our vendors sols had said that they were not dictating what deposit was required, just that one was needed.

So we got a letter today from our buyers sols, saying that they are skint and can not get a deposit together.

I cant understand why our buyers sols dont advise them to get a deposit together, just to proove that they are genuine and wont pull the rug at the last minute. We have our vendors have lots to loose, where as the buyer doesnt have nothing to loose, i would have thought they would have understood?

Im at witts end worrying about this as it seems their is nothing we can do!!

Is there anything else we can do?? Can anyone advise please?

lynzpower

surely the buyer does have stuff to lose- survey costs sols fees?

maybe your buyer is getting 100% mortgagE?

uglybug

Hi Oddgy. We are in the exact same position as you (our buyers are on a 102% mortgage). I am a little nervous too. I even started a similar thread earlier. However, all I hear is heresay about how easy it would be for the FTBers to pull out, and how dangerous it is. I have never actually spoken to anyone who has done this who has said that their sale fell through on completion day. I think that there is a certain amount of scaremongering over this issue.

After thinking about it, the only additional risks are over the buyer pulling out before exchange are: 1) That you'll lose any money in moving costs and (2) That the legal fees will be for a completed transaction and so would be more in the event of it all falling through.

All that an exchange beforehand does is gives you peace of mind and gives the buyers 14 days less to change their minds. Considering that a typical transaction takes about 3 months, I don't think this is a huge problem. In any case, with skint buyers who are relying on the mortgage to pay fees, they have even less of an incentive to pull out as they will have no money to pay these fees...

pawpurrs

off subject have you had the valuation back and if so how did that go?

Oddgy

Hi Uglybug - Yes thanks for that. Im pleased we are not the only one faced with this, however our Sols say it is very rare this happens. Oblviously things dont often go pear shaped otherwise im sure other people would have posted with their reports. (Or they dont want to panic us...!)
I dont want to worry to much about it, but of course it is natural to do so. I did think of putting a deposit up ourselves. Weighing up the pros and cons, i think that would be pointless as they could still drop out and not have the deposit to worry about - we would!
I know it was a silly thought - but i was trying to try and rack my brains to see if there was any way around this.
Anyhow - we havent even sorted a date out yet, so i guess that will be the next major factor. I have a strong feeling they want to be in like tomorrow, however we cant move until 5 weeks time. Ooh, how im looking forward to this one!

PawPurrs, no still havent got the valuation report. We keep on ringing the office, and his secretary just keeps fobbing us off that she passes the messages on to him. We still dont even know what he valued it at, let alone received anything in writing. Its been two weeks this Thursday!!!
I left a message tonite urging him to call us - we havent paid him yet either, so i dont know what hes playing at.

As soon as i hear, ill post back and let ya know.

These are just common problems that cause the time game in the buying and selling process.