Survey race and HSBC mortgage app currently with underwriters

vee_jess

All,
I am confused with my Estate Agent and I need your advice please. Basically, I made an offer on a 3 bed house and the Agent phoned me to say that the offer was accepted (great news). He then asked me about my mortgage and I emailed him a copy of my agreement in principle (from HSBC). After 2 days the Agent phoned me to say that another offer for the same price has been accepted on the property and that whoever gets the survey done first will get priority. I specifically asked him if this a contract race and he said no it's a survey race (something I personally have never heard of before).
I met a mortgage adviser at HSBC and currently my mortgage app is with the underwriters (sent on Wednesday this week). Few questions:
1. Is a survey race legal or its something the agent is saying to get me moving quickly to secure a mortgage or trying to get more money out of me?
2. Note I have asked him to take the property off the market but he said it won't happened until the survey is done, is this right?
3. Any idea how long does HSBC underwriters take to make a decision on mortgage app?
4. Should I do an independant survey before the mortgage approval just to secure the property?

Your advice will be much appreciated. Thanks
J.

harvey115

Have you not instructed your solicitor yet?

I would assume if you instruct your solicitor and get the contracts moving from solicitor's side of yours and the vendor's this should be okay.

betmunch

1. Totally legal - probably just something to get you moving. EAs are fed up with problems with HSBC so they are putting pressure on you to get this moving.
2. Incorrect, this will happen when the Vendor says to take it off the market, probably pre-agreed with the EA that it happens when the Survey is done, but technically if you can get the Vendor to tell the EA to do it then it should be done.
3. Usually longer than most other lenders pieces of string, but shorter than some lenders pieces of string - hope that helps!
4. Would that count?

vee_jess

betmunch wrote: »

1. Totally legal - probably just something to get you moving. EAs are fed up with problems with HSBC so they are putting pressure on you to get this moving.
2. Incorrect, this will happen when the Vendor says to take it off the market, probably pre-agreed with the EA that it happens when the Survey is done, but technically if you can get the Vendor to tell the EA to do it then it should be done.
3. Usually longer than most other lenders pieces of string, but shorter than some lenders pieces of string - hope that helps!
4. Would that count?

Thank you for your reply guys!

I have instructed my solicitor to get the ball rolling already (not the ones from HSBC though, my own solicitor)

I am not sure how to approach the vendor to talk to them about taking the property off the market? Do I need to ask the Estate Agent their contact details?

betmunch

I very much doubt you will get much help from the EA to contact the Vendor, they will want to keep all your communications to the Vendor via themselves.

Do the Vendors live at the house your buying? You could always knock on the door an explain the situation. Having said that, if they trust their EA they will probably take advice on what to do from them.

I have to say if I was the EA I would not recommend taking the house off the market for you, I would suggest they keep it on the market for a better offer.

Sorry for the last paragraph, but I think its best you know what youare dealing with

vee_jess

The house is vaccant and I have no idea where the current owner lives! I understand why the ES is doing this and I think all I can do is to wait for a response from HSBC and take it from there! Only concern is how long will HSBC takes. Anyway, thanks all for your kind reply.
J.

Conrad

The seller HAS to have instructed the EA to accept that other.
Why would your seller want to take the property off market for you, they just want a sale and don't care who gives them that result.

Buyers are extremely fickle and drop out of a purchase in the blink of an eye for all manner of reasons, everything from a Mum taken ill to Dog being run over, so any sensible seller keeps marketing until a buyer is well rogressed, especially where the seller has an urgency.

Good luck and all

Thrugelmir

Survey alone is meaningless. As no indication that a mortgage offer will be made to potential borrowers.

Be prepared to run up costs and be disappointed.

Personally I would back away from the transaction.

vee_jess

All,

Just an update:

1. HSBC underwriters still hasn't made a decision on the mortgage app after a week!

2. The estate agent wrang me to say that the 2nd offer they accepted on the property is greeting their survey in this Friday so my chance is now minimal! Then I asked him if I need to cancel my mortgage app he said no keep it going you never know what may happened! I'm now confused, is there really a survey going on this Friday or just a mind game from the estate agent.

harvey115

I think what you need to do is ask the EA if the other buyer is going ahead you will be pulling back your mortgage. Tell him if he confirms that he is happy with you to go ahead with the purchase they need to confirm this because their will be an added cost of valuation if the other buyer is accepted.

I think before paying for the valuation you should tell him that if your valuation is going through you should be considered for this purchase over the other buyer no matter what.

To be honest I think they are just playing a game due to HSBC, just making you stressed so that you keep forcing HSBC (somehow) to speed up.

betmunch

harvey115 wrote: »

To be honest I think they are just playing a game due to HSBC, just making you stressed so that you keep forcing HSBC (somehow) to speed up.

Totally agree with this.