switching completetion date

exasperated_2

It's not a question of not completing, it is a question of when - due to an error by the broker we are left at the last minute chasing one piece of paperwork. Deposit has already been made, contracts signed and exchanged between solicitors, everything is binding, the last step is just the drawdown and to move in. The problem is because of this missing paperwork, we may have to delay by a few days, depending on the post; the mortgage company won't allow drawdown without it. It is not a question of whether this will happen or not, just when. So I was just wondering if putting "completion" back a day or so would balls the whole thing up or if it nothing to totally panic about.

Exchange = exchange of signed contracts
Completion = handing over of monies and keys
Close = Completion

At least that is how I understand it, which I could be wrong about, and I used to always confuse "exchange" with exchanging the keys, not the contracts.

Why does this have to be so confusing and stressful???

Me_Myself_2

Exchange and Completion are two legal terms, whereas 'Close' is not.

Richard_Webster

"Close" is a term used in the US, but not in England.

You say that there was a foul up by the broker.

Normally your solicitor would not exchange until he was sure all the mortgage lender's requirements could be satisfied. However, some lenders just cannot be trusted and they issue "offers" when they are still waiting for something and they don't tell anyone that. They then say to the solicitor that they need such and such...

See my long post on this thread which explains the sort of thing that can happen:

http://forums.moneysavingexpert.com/showthread.html?t=550114

Is that the kind of trouble your solicitor is having?

exasperated_2

They are asking for additional address verification, a bank statement, which has not yet arrived in the post, they have the mortgage protection life insurance, the house contents insurance, bank statement from one of the mortgage holders, the direct debit instruction, and now they want an additional bank statement because I'm not named on the other bank statement (the account the direct debit is coming from) (but I am named on the contents and life insurance policies that have the same address). It was posted out on the 28th but has not arrived yet. They did not accept a printout from the bank stamped by the cashier. If it is not in tomorrow's post I don't know what we are going to do.

Why do the banks not have an address verification form that they can fax to lenders/solicitors upon request instead of going through this post rigamorale?

I am so worried and stressed out right now I don't know what to do. We were supposed to complete today, and if the statement had arrived today we would have been able to complete on Friday and now if it doesn't arrive tomorrow I don't know what we will do. I am sick to my stomach over this.

exasperated_2

Richard, I just read your post and yes that sounds like what we are going through now. In fact today we had to courier over the hard copy of the life insurance police because they would not issue without it, even though they have had the policy number for a week now. When the solicitor asked would that not also suffice for address verification as it has both our names on it and the address, they were told no, they also need the missing bank statement and will not allow draw down until they have it.

PasturesNew

I never had to have life assurance.
I wonder if that's because I am single

bobbie78

I don't know the answer to your question but if you need to post anything in the next week do NOT send it royal mail, there are 2 48 hour strikes which basically mean after tomorrow all the post will be jammed up till next Thursday when it will start to trickle through again, so I'd look into couriers or something similar if you have to post anything until this is sorted out for you.

Good luck with everything, I had a similar thing with getting statements together we just hadn't exchange (just a couple of days before hand mind), just keep hanging on tight it will be worth it when you have your first cuppa tea sat on the floor with no furniture in your new place, in a couple of months all the drama will seem a distant memory - honest.

barnaby-bear

exasperated wrote: »

It's not a question of not completing, it is a question of when - due to an error by the broker we are left at the last minute chasing one piece of paperwork. Deposit has already been made, contracts signed and exchanged between solicitors, everything is binding, the last step is just the drawdown and to move in. The problem is because of this missing paperwork, we may have to delay by a few days, depending on the post; the mortgage company won't allow drawdown without it. It is not a question of whether this will happen or not, just when. So I was just wondering if putting "completion" back a day or so would balls the whole thing up or if it nothing to totally panic about.

Exchange = exchange of signed contracts
Completion = handing over of monies and keys
Close = Completion

At least that is how I understand it, which I could be wrong about, and I used to always confuse "exchange" with exchanging the keys, not the contracts.

Why does this have to be so confusing and stressful???

Things do get delayed and completion goes through but usually the delayign party will have to pay the chains costs, your solicitor should have ensured funds in place and has insurance to pay this if it's his fault, if he verified all was in order with mortgage correctly but they lied or signed stuff they shouldn't and it's their fault they will be liable for the costs. You need to find out exactly what went wrong and who's fault. You pay your solicitor to ensure this doesn't happen.

Richard_Webster

additional address verification, a bank statement, which has not yet arrived in the post, they have the mortgage protection life insurance, the house contents insurance, bank statement from one of the mortgage holders, the direct debit instruction, and now they want an additional bank statement because I'm not named on the other bank statement (the account the direct debit is coming from)...

Most of these things seem to me to be basic to them even dealing with you in the first place so I can't understand how they came to issue an offer and instructions to your solicitors without them. If they send you an offer and your solicitors mortgage instructions I think it is quite reasonable to suppose that ID checks have be sorted out from their point of view. The offer doesn't say it is conditional on these being satisfactory does it? Maybe if you end up having to pay penalties for late completion you could make a complaint to the FSA:

http://www.moneymadeclear.fsa.gov.uk/guides/making_a_complaint.html

Life assurance is rarely checked by lenders these days but if they do want to see it then it should have been a clear condition and your solicitor should have been told what papers he had to produce and should not have exchanged until he knew he could produce them. You will have to check with your solicitor how clear the condition is. If it isn't clear then again you might reasonably make a complaint. Lenders must know that reliant on an offer's conditions being satisfied buyers exchange contracts. If lenders don't tell you or your solicitors what has not been satisfied, or don't at least make it clear in their paperwork that your solicitor should check with them that all conditions have been satisfied before exchanging then I don't see that they should bring up matters at this stage and you have a legitimate complaint.

Some of the more Mickey Mouse lenders do need exposing I'm afraid. Did your solicitor warn you that he wasn't sure he could trust your lender and suggest a longer period between exchange and completion to cover such potential problems?

exasperated_2

At this point I just want to move and have this done with, I am so beyond making a complaint. Sol said nothing about lender, but was concerned about the time the mortgage broker was taking tying up the bits and bobs. At this point I just don't know what to do - I can't speed the post up and everything appears to hinge on that stupid @!£$# useless statement. And what burns me is that our address is going to change anyway to the new house so what matter at this point?

Thank you for your help, I really appreciate it. I am hoping the bank manager can send a fax verifying their records to the sol but not holding my breath. I don't know what else I can do at this point bar wait. Very frustratingly awful, especially coupled with the fear this screws everything up.