Cash buyer turned in to mortgage buyer - still waiting

steeeb

So..

I accepted an offer from an investor on my property which was meant to be a cash offer. I was told they can go as quickly or slowly as needed.

I found a property straight away, but it fell through a month or so in and then found another straight away and within a month everything was sorted.

I'm waiting to exchange and the agent rang me explaining because they're an investor there's a company involved which looks after their finance or something along those lines and can a surveyor come and have a quick look at the property.

A week on an we were looking to exchange and their solicitor then says they're still waiting for a mortgage offer before they can forfill the stuff they require and then to be able to exchange.

A week on from then and still no mortgage offer.

I'm annoyed that I was told they were a cash buyer and now when I'm waiting to exchange/complete we're still waiting for them to get a mortgage offer which in a normal buyers case we wouldn't have even done searches yet until the chain was complete.

The agent says they've been advised to port a mortgage from a property that has been exchanged as is completing on 24th - but no idea if this is more "withholding of the truth" or whether the agent really doesn't know.

Anyone any advice on what to do? We've been waiting a couple weeks to exchange.

The_Logans

That sounds very fishy! Did you accept a lower offer based on the fact that they were a cash buyer? Did you have any other interest/offers on your property?

always_sunny

Couple of weeks? I would have thought that even cash buyers it'd take a bit longer than that.
Wouldn't searches, conveyances, etc also need to take place?

Mortgage offers can be done fairly quickly if everything is in order.
You could ask through your solicitor for a clear understanding of where things are, sounds like it's not clear...

steeeb

The_Logans wrote: »

That sounds very fishy! Did you accept a lower offer based on the fact that they were a cash buyer? Did you have any other interest/offers on your property?

No, but we had another offer of the same from a non-cash buyer and 3 lower offers.

steeeb

always_sunny wrote: »

Couple of weeks? I would have thought that even cash buyers it'd take a bit longer than that.
Wouldn't searches, conveyances, etc also need to take place?

Mortgage offers can be done fairly quickly if everything is in order.
You could ask through your solicitor for a clear understanding of where things are, sounds like it's not clear...

The started the searches early in the process, they were finished like a month ago. They're not doing a survey it seems, at least I've not heard about it being mentioned.

My concern is the 'few weeks' for the actual mortgage offer, which appears to be all everything is hinged on.

always_sunny

steeeb wrote: »

The started the searches early in the process, they were finished like a month ago. They're not doing a survey it seems, at least I've not heard about it being mentioned.

My concern is the 'few weeks' for the actual mortgage offer, which appears to be all everything is hinged on.

Unless you ask, you won't know. A mortgage offer if everything is in order (document required are returned, etc) is quick. They might not be doing a survey but the lender will need to book a valuation more likely. Unless you know exactly what's pending it's all guess which won't help you.

Mickygg

An EA should ask for proof of funds before the sales memo is drawn up and before taken off market. Mine did this. Ask your EA for the proof, I bet they didn't check.

csgohan4

what else are they not telling you as the buyers?. A cash buyer they are not as they are needing a mortgage. I would be tempted to re market the property if they dont get a move on

JigglyPug

I would go back to your agent and tell them that they need to find out exactly what is going on and what else the buyer needs before they are ready to exchange.

Cakeguts

Strange investor. I would have thought that they would have known the difference between being a cash buyer and being someone who needed a mortgage.

The chances are that this is not going to complete. The way I read this is that they said they were cash buyers but actually they didn't have the cash until they sold something first. That is not a cash buyer. A cash buyer is someone who has the money in the bank ready to go not someone who is relying on another sale to give them the money. To be a real cash buyer they should have completed the sale to get the money before they made and offer to you.

They aren't cash buyers and now it seems that the sale they are completing on isn't enough to cover the purchase price of your property without them getting a mortgage. This whole situation is misleading to give them the benefit of the doubt.

So you have to decide if you want to wait and see if they try to mislead you about something else of whether you put your property back on the market and see if you can get someone who isn't going to mess you about.

AnotherJoe

[STRIKE]There was a similar post to this a few weeks ago, the cash buyer dawdled, became a non cash buyer and faded away over months.

Given they were meant to be a cash buyer and now arent, I'd give a very short deadline, probably end of this week, after which you go back to the other offers and see if they are still interested.[/STRIKE]

Negated by answer dripfed by OP later on in thread.