About to exchange; buyer doesn't have the deposit

monty-doggy

HappySeagull wrote: »

@Hazyjo, no I don't think it was planned, but I don't understand it. They're both doctors, so not stupid, but maybe financially naive. It could be an excuse/cover story, but they'll lose any fees they've already paid.

The buyer is supposed to be contacting me directly tonight, so let's hope he's motivated. Unfortunately, I suspect his priority will be the forthcoming baby.

If they are both doctors then they should be easily able to raise 15k? SURELY they have a really good income?

This sounds like a scam to me.

zzzLazyDaisy

Just don't do it.

'Vendor gifted deposits' used to be quite common, but no lender allows them now.

Under the money laundering regs they have to show where the deposit has come from. Normally it would be savings and they would just produce bank statements. But they are £15k short, so their bank statements won't account for the full deposit. If they borrow £15k (from you or anyone else) the solicitor must declare it to the lender... who will adjust their affordability figures accordingly, and reduce the amount they are prepared to lend.

It is a mess, and one that you should not get involved in because you are at risk of unwittingly becoming a party to mortgage fraud.

I suggest that you take a step back and leave it to them to sort out with their solicitor. Yes, they may pull out of the deal, and yes you may have to remarket the property, but frankly their whole story smells fishy.

knightstyle

Warning, do not lend them the money unless you are prepared to write it off. We lent our buyers buyers (first time buyers) their deposit to stop the chain from collapsing, got a charge on the deeds. They never repaid a penny, the flat was repossessed and sold by the Nationwide and we got nothing. We didn't even know it had been repossessed! Nationwide were very bad and had all their costs, interest etc. as they had first charge.
So you need to find another buyer in these circumstances.

HappySeagull

Thanks all for your input. No, we're not going to take any risks with loans, gifts or dodgy deals. But if I hadn't asked the question, I would have always wondered if we could have done something.

FWIW, I've spoken to the buyer, and it actually sounds as if he has been scammed himself - and he doesn't seem to know the extent of the black hole in his savings, or if he's in for more losses!

Anyway, the house is going back on the market tomorrow, just hope we can save our purchase.