Have we actually exchanged???

Lbarn

Hi guys

For any of you that have read any of my previous posts, we have had an absolute horrendous time trying to buy a property.

Anyway, the very basics are - its a repossession so we have had lots of bidding wars, stress etc, finally we exchanged yesterday :j

Then when I got home from work yesterday, our re-written mortgage offer had arrived in the post (had to be re-written has we had had to raise our offer, so needed more mortgage and a new valuation) and to my horror, purchase price was correct - but mortgage amount and valuation were still corresponding to the original price!!!!!!!!!!!!!

So the mortgage papers leave us with a shortfall of £3.5k and valuation is £4k under what we are paying.

I called our mortgage advisor and he said everything at his end is correct and they work on a centralised system so cannot figure out why this has happened, and thinks just an admin error and not to worry! however he cant speak to lender until tuesday..... we are due to get keys wednesday!!

What I want to know is, legally can we have exchanged if our paperwork is not written up correctly?

Its been so problematic, that its just get another hurdle we could do without....:(

Thrugelmir

Surprised that your solicitor exchanged contracts without a mortgage offer in place.

Lbarn

We had a mortgage offer in place?

Thrugelmir

Lbarn wrote: »

We had a mortgage offer in place?

You said it arrived in the post yesterday. The offer has to be accepted by yourselves. By signing and returning the mortgage offer document to the lender.

As you've stated there appears to be a shortfall. If you've exchanged you are committed to the purchase. The shortfall should have been addressed prior to exchange.

Lbarn

We dont have to sign anything or send anything back.... we were meant to exchange nearly 2 weeks ago, so "signed" then... then got outbid and had to have mortgage increased slightly.... hence new paperwork is wrong.

Since my original post have spoken to lender, and they are due to send funds tuesday AM and have said solicitor will have to transfer them back and then new paperwork drawn and money re-sent.... the whole thing is a nightmare and pure incompetence.

We are due to complete wed, our deadline for completion is friday.... does anyone know what will happen if we don't complete for friday??

ive read terms and conditions, and believe the worst that can happen is a fine from sellers solicitors, does anyone know different?

Thrugelmir

Lbarn wrote: »

ive read terms and conditions, and believe the worst that can happen is a fine from sellers solicitors, does anyone know different?

At the very worst lose your deposit. However unlikely.

gazfocus

Lbarn wrote: »

ive read terms and conditions, and believe the worst that can happen is a fine from sellers solicitors, does anyone know different?

I would enquire as to whether this fine should be covered by your mortgage lender for making the error. It doesn't seem fair that you should be punished for the mortgage lenders error. However, I'm sure if your solicitor explains the issue with the sellers solicitor they would understand.

Lbarn

Thanks you have put my mind at rest..... to be honest we aren't too worried about the shortfall if worst came to the worst we would find it of course more ideal to have on mortgage.

We were more concerned they could withdraw the sale from us....

Needless to say a very strong worded letter has gone to our mortgage advisor to sort this mess out!!

Once we get in the house i am never EVER moving again!!

Lbarn

Thrugelmir, i just love your general optimism... you make me giggle

GMS

You had a mortgage offer in place but not for the correct amount therefore not in a position to exchange. If your solicitor has exchanged without the finance being in place then I would be placing the blame on them.

Your broker should have ensured the lender were happy with the amended purchase price and subsequently agreed to a higher valuation to go with this. It is possible that the lender have referred back to the valuer who has said the property value remains as was before meaning the lender will base the lending on this as the lower of the purchase proce or valuation. In that circumstance it is up to you to cover the difference.

If the lender has done this then they are not at fault and have made no errors. Your broker needs to get on to this asap. If they will not amend the valuation and loan you will need to find the difference. If you have exchanged already then you need to pass it back to your solicitor.

No finance in place should mean no exchange.

Lbarn

There was no issue with valuation, this was all confirmed at higher price and mortgage certainly no issue...

Would our solicitor not have agreed all this with lender at exchange thats what we don't understand?