help required for ftb

craftygranny

Hi there,
Hope someone can help. My son recently saw a house he liked up for sale at 95k the EA told him it was a reposession and he said he'd like to offer 80k. He'd already seen a mortgage advisor and arranged how much in principal he could borrow. He took in a mortgage agreement in principal for 80k which the EA had advised him to do . The EA rang back later and said the 80k had been refused but they would accept 85k so he said he'd pay 85k and they asked him to drop off a new mortgage agreement in principal at the new offer which he did . Now he's had a call saying that they won't accept his offer unless he has a survey done first .The mortgage company has told him not to waste his money as their survey is the one that counts and they'll do it as soon as his offer is accepted.
We asked the ea why they were asking for this and she said she didn't know and she hadn't heard of it before but that the repo company said something about the mortgage company needed to do their survey first in case it was devalued and he wouldn't get the full ammount . The mortgage company won't do a survey until offer is accepted and repo company won't accept unless survey is done first so it seems to be stalemate. any ideas please.

craftygranny

any ideas anyone ? i will say thanks.

tomstickland

Well he could pay for a survey so that the repo company can accept the offer and then the mortgage company can do theirs after the offer is accepted. Seems a bit stupid, but it would break the log jam.

annie123

Hopefully the following will help from an EA point.

It doesn't sound like the EA has explained things very well.
What happens is the following:

buyer offers.. brings proof of finances to agent, could be mortgage offer or cash in bank etc.

Bank/building society say yes in principle to agent, but not taking it off market until mortgage offer issues (after survey) they do not normally accept other offers in during this time.

Your son should then fill in mortgage application. If getting homebuyers report as well as a mortgage offer, get it done by the same lender....usually cheaper and if there are problems it will be treated more seriously by EA.
No need to get a separate company. Some lenders do them free/discount, depends on the offers at the time.

I would also suggest that your son sees another broker. The broker should know the ropes. But so should the EA.

Whilst this is going on the solicitors will be doing their thing.
Many repo lenders ask for 28 day exchange from the date your sons solicitor receives the draft contract.

You need to go back to the EA saying here are my solicitor’s details. I have filled in my mortgage application. Confirm this in a letter to them. They should send you within 48 hours written confirmation of the purchase price with the seller’s solicitor details.

If they don’t do this there is something fishy going on.

Hope this helps, if I haven’t explained something please let me know.

Good luck and keep us posted.

craftygranny

hi annie123,

Thank you so much for your help. I think i understand now what his ea was trying to explain. we will be checking it out today (weds) and i will keep you posted thanks again .


crafty granny

craftygranny

hi annie,

Thanks very much for all your help it was as you suggested that the ea hadn't explained it very clearly. I rang them this morning and asked if it was as you said and she confirmed this . By mid afternoon we had a phone call saying they were going to do the 7 day notice and my son is thrilled. many thanks

crafty granny