Failed completion - money returned to lender.

Snookie12cat

My completion and exchange failed on Friday and the solicitor sent the money back to the bank. 
What happens now? The bank have updated the app with a completion date and now i have received a letter to say I owe X amount of money.

Will this all be corrected when they realise the money is back? And what happens to the chaps fees I would have paid and the interest for the days my solicitor had the money? Do I need to pay this or will it be added to the loan when we eventually complete? 

sammyjammy

Always dangerous to exchange and complete on the same day!  Why did it fail and whose fault it was will be the big factor

Snookie12cat

sammyjammy said:

Always dangerous to exchange and complete on the same day!  Why did it fail and whose fault it was will be the big factor

Not my fault, but regardless the money has been returned so I just wondered on the process for how the bank will sort it out.

andyf1980

All banks would be different but you would assume your solicitor would contact the bank and ask them to make another payment prior to completion. 

Tiglet2

As exchange did not take place, you are not in breach of contract.  I wouldn't expect the bank to be charging you chaps fees or interest on the monies.  Hopefully all will be sorted out next week.

Snookie12cat

Tiglet2 said:

As exchange did not take place, you are not in breach of contract.  I wouldn't expect the bank to be charging you chaps fees or interest on the monies.  Hopefully all will be sorted out next week.

Thank you - doesnt sound too bad then - fingers crossed they do not, as the costs just keep piling up
Frustrating, but will feel better when the account is corrected, hopefully on Monday.

tiger_eyes

I experienced a failed completion where the mortgage lender recalled the funds, and a second failure when my solicitor forgot to transfer funds on completion day, and I don't remember being charged for either.

Kyresa

The conveyancer will let the bank know the day of completion.   If completion fails, the conveyancer has x amount of time to send the funds back to the bank before you are officially deemed to have started the mortgage (some require next day return, some say you can hold for 3 or so days).  Once the bank confirms they have funds back, as long as your mortgage has not expired, the conveyancer can request them again. 

I recently had a matter where we were desperately trying to complete on a particular day and it was a bit touch and go.  explained to client and client agreed to the ordering of the funds and the chaps fee to return them if we had to (which unfortunately we did, and then completed two weeks later). 

  

Snookie12cat

tiger_eyes said:

I experienced a failed completion where the mortgage lender recalled the funds, and a second failure when my solicitor forgot to transfer funds on completion day, and I don't remember being charged for either.

Wow, that sounds stressful. 

Snookie12cat

Kyresa said:

The conveyancer will let the bank know the day of completion.   If completion fails, the conveyancer has x amount of time to send the funds back to the bank before you are officially deemed to have started the mortgage (some require next day return, some say you can hold for 3 or so days).  Once the bank confirms they have funds back, as long as your mortgage has not expired, the conveyancer can request them again. 

I recently had a matter where we were desperately trying to complete on a particular day and it was a bit touch and go.  explained to client and client agreed to the ordering of the funds and the chaps fee to return them if we had to (which unfortunately we did, and then completed two weeks later). 

  

Thank you. The solicitor said they had to be back within 24 hours or there abouts. She got them Thursday afternoon and sent them back on Friday afternoon at 4pm so I hope that is okay - maybe just over 24 hours. 

It seems like an automated thing on completion day to send the letter and update the app to show mortgage monies. I do hope that next week they can sort it all out ready to request it again. 

Schwarzwald

My same day exchange and completion was delayed twice.
first time money was send back to Lender (hsbc) and second time solicitor was able to get one more day to hold the funds upon when we finally went through.
dont recall having been charged for the first return of the funds. Solicitors seem to only be allowed to hold mortgage funds for 1-2 business days, then seem to be required to return the funds. But also didnt seem like a biggie and wld assume this happens v frequently.