Another house purchase gone wrong- what next

horizon

For the second time in eight months our house purchase has gone wrong.

We were gazumped the day before exchange last november, and ended up well over a £1k out of pocket and having to rent since.

After spending many months since searching for another property, we finally found one we both liked and had an offer accepted on a vacant house with no chain on the 16th May.

Everything seemed to be going well, the vendors were pushing for a quick sale to avoid a further mortgage payment on the 28th June, and we were keen to avoid paying another months rent due on the 24th June.
The exchange was meant to be today, with the completion on Friday.
I had a call from my solicitor this afternoon, telling me it wasn't going through as the vendors did not have enough money to pay off the mortgage ?!

This makes no sense to me, as they have lived in the house for over seven years and I would have thought had plenty of equity taking into account the price rises since then.

I'm not sure how they have ended up owing more than the value of the house, unless they have taken out secured loans or remortgages for improvements ?

Should my solicitor have known about this much earlier ?
Would this have shown up on the searches ? or charges on the deeds ?

I'm told the vendor is trying to take out a loan to pay off the mortgage, sounds a bit strange to me ?

Not sure where to go from here, I'm certainly not going to pay any more for the property.

I'm thinking of telling them the price I'm willing to pay will drop by £1k for every week that goes past after the end of this one.

Or should we just pull out, take another £1k hit (and extra rent, assuming the landlord agrees we can stay !) and start looking again ?

Yours........ a very annoyed
Horizon:mad:

mightymouse

Hi

I know its a bad time and its 99.9% coincidence and no connection but the following thread relates to the sellers position. (there is no connection is there?)

http://forums.moneysavingexpert.com/showthread.html?t=479066

cdafonseca

home buying can be really frustrating i'm praying for mine to don't go on the wrong way. did you seek advice with your solicitor ?
all the best for you

cdafonseca

david29dpo

your solicitor would not have know. the money situation of the seller has nothing to do with your solicitor. they could have had a good time with there credit cards and lamped it on the mortgage, who knows.

arthur_dent_2

Just been gazumped on a property we really liked. We had our offer accepted and eventually matched the offer of the person who gazumped us but the vendor still decided to go with them and we really can't afford anymore.

Big hugs and sympathy it is a horrible thing to be gazumped but to then have all this worry about your vendor aswell is truly awful.

Good luck:)

brock-cruse

I feel your frustration, fury, sadness etc etc. Have been through it myself once (week from exchange after 7 months!) and possibly looking at it happening again (again a week or so from exchange..if things cant get sorted!). It just shows you that there is something wrong in the system. Apparently 1 in 3 sales fall through...surely we have had our share...wasted a year of my life stressing and i dread to think how much money on 2 lots of searches, sol fees, 2 surveys. If it falls through this time seriously considering renting it out and renting a place ourselves or perhaps a let to buy!! Its pure madness and to me the worst thing is your life is in the hands of the agent and sols and how they handle the situation.......AAARRRGGGGHHHHHHHHH!!!???*****

silvercar

I'm thinking of telling them the price I'm willing to pay will drop by £1k for every week that goes past after the end of this one.

That won't help them clear their mortgage!

Chances are that they will arrange an unsecured loan to make up the difference or renegotiate the estate agents commission. It could just mean a delay rather than losing the house. They must have known the size of their mortgages when they started the selling process, so there is a reasonable chance they will proceed.