House sale falls through. Who is at fault for not checking the mortgage status of the buyer?

Snakes_Belly

What happens when a sale falls through after three months because the buyer has been unable to obtain a mortgage? 

I was under the impression that this should have been checked out by the agent before the buyer became involved in costs relating to the sale, draft contracts etc.  

hpsauce86

Unfortunately although the EA will do checks, it won’t be until the buyers apply for a full mortgage that they’ll know whether they can get it or not, and lenders have tightened affordability so although they may have been pre approved it’s not certain. 

GDB2222

It may not be anyone's fault, but, if it makes you feel better, I will take the blame.

MaryNB

The EA may have asked for their AIP and proof of deposit, but they're unlikely to have read through their three credit reports and looked into the detail of their employment. Unless the buyer used a mortgage broker working for the EA, the EA has very limited scope to assess the buyer's chance of getting a mortgage. 

Thrugelmir

Snakes_Belly said:

What happens when a sale falls through after three months because the buyer has been unable to obtain a mortgage? 

The vendor for waiting 3 months. As that's an excessive amount of time waiting for someone to obtain a mortgage. 

Snakes_Belly

hpsauce86 said:

Unfortunately although the EA will do checks, it won’t be until the buyers apply for a full mortgage that they’ll know whether they can get it or not, and lenders have tightened affordability so although they may have been pre approved it’s not certain. 

Thanks for your response.

This is not the sale of my own property.  I do realise that initially the buyers may only have had an agreement in principle. What seems particulalry annoying is the length of time it has taken to discover that the buyers had not been able to obtain a mortgage.

The agent has been zealous over evidence of the funding for the purchase yet could do the same for the sale,

Snakes_Belly

Thrugelmir said:

Snakes_Belly said:

What happens when a sale falls through after three months because the buyer has been unable to obtain a mortgage? 

The vendor for waiting 3 months. As that's an excessive amount of time waiting for someone to obtain a mortgage. 

I know. Not my sale.

GDB2222

Snakes_Belly said:

hpsauce86 said:

Unfortunately although the EA will do checks, it won’t be until the buyers apply for a full mortgage that they’ll know whether they can get it or not, and lenders have tightened affordability so although they may have been pre approved it’s not certain. 

Thanks for your response.

This is not the sale of my own property.  I do realise that initially the buyers may only have had an agreement in principle. What seems particulalry annoying is the length of time it has taken to discover that the buyers had not been able to obtain a mortgage.

The agent has been zealous over evidence of the funding for the purchase yet could do the same for the sale,

I’ve been saying for ages that buyers and sellers should vet each other equally thoroughly. 

user1977

Snakes_Belly said:

hpsauce86 said:

Unfortunately although the EA will do checks, it won’t be until the buyers apply for a full mortgage that they’ll know whether they can get it or not, and lenders have tightened affordability so although they may have been pre approved it’s not certain. 

What seems particulalry annoying is the length of time it has taken to discover that the buyers had not been able to obtain a mortgage.

Mortgage applications can take a long time. It's possible the time covers e.g. being turned down by one lender and trying again elsewhere. Without more detail, it's difficult to say anyone ought to be blameworthy.

Thrugelmir

GDB2222 said:

Snakes_Belly said:

hpsauce86 said:

Unfortunately although the EA will do checks, it won’t be until the buyers apply for a full mortgage that they’ll know whether they can get it or not, and lenders have tightened affordability so although they may have been pre approved it’s not certain. 

Thanks for your response.

This is not the sale of my own property.  I do realise that initially the buyers may only have had an agreement in principle. What seems particulalry annoying is the length of time it has taken to discover that the buyers had not been able to obtain a mortgage.

The agent has been zealous over evidence of the funding for the purchase yet could do the same for the sale,

I’ve been saying for ages that buyers and sellers should vet each other equally thoroughly. 

Actions speak louder than words. People make great actors.