Seller readvertising due to slow mortgage offer

littlecactus

Short story:
We offered on a property in early June, all searches are done and we’ve progressed things as quickly as possible. Both we and our seller wanted a quick sale. But we’re porting and slightly increasing our mortgage and the provider - Platform - have been very slow. It’s been several weeks since they did the valuation, and still no mortgage offer. Our mortgage broker calls them daily to push for an update. Now, with no warning, our seller is readvertising the house “in case we don’t get the mortgage”. This feels unfair when we’re doing all we can, though we know they’re in their rights to. Any thoughts? Anything at all we can do?


Long story:
- The house had been for sale since January before we offered in June. Its sale had twice fallen through for unknown reasons before we made an offer. 

The seller has been difficult throughout:

- Refusing a roof survey/check when the surveyor recommended one. 

- Refusing any requests (they’re a developer who extended the property substantially and our offer was based on some conditions but we were also told they “couldn’t reduce the price beyond x as the seller knows there will be snagging to do”, but now when we raise things that are snagging we’re told no to everything). 

- We had a drain CCTV survey that could not be completed due to roots and debris and asked the seller to carry out necessary maintenance to allow the survey; they won’t discuss this till we have our mortgage offer and also haven’t responded to final solicitor queries either. 

So it’s been a tricky process up to this point, despite not being especially long. Multiple times we’ve tried to negotiate things and ultimately just accepted 100% what the seller wants as they’re immovable. And so for them to now readvertise just feels like a real kick in the teeth when we’ve done all we can to be reasonable and to meet all of their demands. 

On the mortgage front, we’ve done all we can:
- There were a few weeks of delays to start when Platform wouldn’t let us apply as they were changing rates and closed to applications. 

- A week of waiting for them to give the breakdown so we could approve and begin the proper application. 

- And then now since the survey we’ve chased and chased and our broker has repeatedly asked them to escalate. They say they will / have. 

- They’ve said it’ll be reviewed last week, in 48 hours etc etc. But now just say it’s with the underwriter and the underwriter says they have a lot of cases to review. 

That’s about it. I suspect the answer is just: all you can do is wait. The seller can do what they want. I’m not sure what other reply I’m hoping for… maybe just some sympathy..! 

[Deleted User]

The seller has been going through the process since the house was first put on the market and is as fed up as you are, remarketing it is sensible - until contracts are signed you could pull out too - if your financial case requires underwriters they'll know that it's not straightforward and are preparing themselves (as should you be) for a break in the chain. 

This whole scenario is quite common and what makes house buying and selling so fraught.

Do your own due diligence regarding the specifics requiring the underwriters, this will enlighten you and you might be able to correct/amend/change your buying criteria and stop this stalemate from continuing.

littlecactus

[Deleted User] said:

The seller has been going through the process since the house was first put on the market and is as fed up as you are, remarketing it is sensible - until contracts are signed you could pull out too - if your financial case requires underwriters they'll know that it's not straightforward and are preparing themselves (as should you be) for a break in the chain. 

This whole scenario is quite common and what makes house buying and selling so fraught.

Do your own due diligence regarding the specifics requiring the underwriters, this will enlighten you and you might be able to correct/amend/change your buying criteria and stop this stalemate from continuing.

Thank you for your reply. 

Although I have to say firstly the seller is unaware it’s with the underwriter as we only heard this yesterday, so they’re readvertising based on length of time alone; and, we’ve not been led to believe the underwriting is at all unusual or advised of any concerns. Is this definitely a red flag? Or something some lenders do anyway?

housebuyer143

Think of this this way, it's probably fallen though at least once because someone couldn't get a mortgage. 
My property has fallen though twice and it's incredibly frustrating and costly when it goes this slow. 
My first buyer waited 3 months for his mortgage and was declined. He also did all the legals and we were ready to exchange. 

Not a lot you can do. You won't lose it, I am certain if your offer comes through they will still sell it to you. They are just taking back up plans at this point. Do you have a back up plan should you not get the mortgage? If so, share that with them.

littlecactus

housebuyer143 said:

Think of this this way, it's probably fallen though at least once because someone couldn't get a mortgage. 
My property has fallen though twice and it's incredibly frustrating and costly when it goes this slow. 
My first buyer waited 3 months for his mortgage and was declined. He also did all the legals and we were ready to exchange. 

Not a lot you can do. You won't lose it, I am certain if your offer comes through they will still sell it to you. They are just taking back up plans at this point. Do you have a back up plan should you not get the mortgage? If so, share that with them.

Thanks. I think perhaps if they’d been more reasonable up to this point, or given any warning of readvertising, we might feel more understanding. As it is, it feels pretty harsh when we’re doing all we can and are totally committed to the sale. I understand things fall through all the time etc. I’ve just not previously been involved in a sale where the seller has shown so little good faith throughout (eg the repeated demands and refusals, and now this). 

housebuyer143

littlecactus said:

housebuyer143 said:

Think of this this way, it's probably fallen though at least once because someone couldn't get a mortgage. 
My property has fallen though twice and it's incredibly frustrating and costly when it goes this slow. 
My first buyer waited 3 months for his mortgage and was declined. He also did all the legals and we were ready to exchange. 

Not a lot you can do. You won't lose it, I am certain if your offer comes through they will still sell it to you. They are just taking back up plans at this point. Do you have a back up plan should you not get the mortgage? If so, share that with them.

Thanks. I think perhaps if they’d been more reasonable up to this point, or given any warning of readvertising, we might feel more understanding. As it is, it feels pretty harsh when we’re doing all we can and are totally committed to the sale. I understand things fall through all the time etc. I’ve just not previously been involved in a sale where the seller has shown so little good faith throughout (eg the repeated demands and refusals, and now this). 

No I agree. Even though I have been burned twice I wouldn't just remarket without giving notice to the buyer and a deadline, that's harsh. I guess they just are very anxious about it all and don't know what to do. 
Can you do back and ask for 2 more weeks? Really emphasize how much you want it..

I can guarantee you the seller does not relish in starting again and really want it to work with you. They are probably just at a loss with what to do next and are worried about waiting for nothing. 

k3lvc

littlecactus said:

Short story:
We offered on a property in early June, all searches are done and we’ve progressed things as quickly as possible. Both we and our seller wanted a quick sale. But we’re porting and slightly increasing our mortgage and the provider - Platform - have been very slow. It’s been several weeks since they did the valuation, and still no mortgage offer. Our mortgage broker calls them daily to push for an update. Now, with no warning, our seller is readvertising the house “in case we don’t get the mortgage”. This feels unfair when we’re doing all we can, though we know they’re in their rights to. Any thoughts? Anything at all we can do?

 

Part of the issue here is you're dealing with a developer so emotion/understanding go out of the window

The thing they'll understand is action rather than promises though it seems you're doing all you can

Even as a private vendor I suspect I'd be putting back on the market if it had been 'several weeks' and still no mortgage offer in place

user1977

Several weeks with no progress of your mortgage application (even if it's purely the lender's fault) is not going to go down well with any vendor - and in theory the whole transaction could have been done in a few weeks (or you at least get your mortgage offer).

I would expect they will at least give you a final chance if and when they get an alternative offer.

BikingBud

littlecactus said:

Short story:
We offered on a property in early June, all searches are done and we’ve progressed things as quickly as possible. Both we and our seller wanted a quick sale. But we’re porting and slightly increasing our mortgage and the provider - Platform - have been very slow. It’s been several weeks since they did the valuation, and still no mortgage offer. Our mortgage broker calls them daily to push for an update. Now, with no warning, our seller is readvertising the house “in case we don’t get the mortgage”. This feels unfair when we’re doing all we can, though we know they’re in their rights to. Any thoughts? Anything at all we can do?


Long story:
- The house had been for sale since January before we offered in June. Its sale had twice fallen through for unknown reasons before we made an offer. Twice and you haven't established why? How can you ensure your own due diligence? Aren't you concerned about these potential show stoppers?

The seller has been difficult throughout:

- Refusing a roof survey/check when the surveyor recommended one. How can you ensure your own due diligence? Aren't you concerned about the lack of permission? What are they trying to hide?

- Refusing any requests (they’re a developer who extended the property substantially and our offer was based on some conditions but we were also told they “couldn’t reduce the price beyond x as the seller knows there will be snagging to do”, but now when we raise things that are snagging we’re told no to everything). You tried to complete your due diligence, found issues and were left holding the risk, what does the tell you about the mindset of the vendor?

- We had a drain CCTV survey that could not be completed due to roots and debris and asked the seller to carry out necessary maintenance to allow the survey; they won’t discuss this till we have our mortgage offer and also haven’t responded to final solicitor queries either. You tried to complete your due diligence, found issues and were left holding the risk, what does the tell you about other potential issues, and the costs! 

So it’s been a tricky process up to this point, despite not being especially long. Multiple times we’ve tried to negotiate things and ultimately just accepted 100% what the seller wants as they’re immovable. And so for them to now readvertise just feels like a real kick in the teeth when we’ve done all we can to be reasonable and to meet all of their demands. The vendors  may have been immovable when challenged by the other potential buyers hence it being re-marketed a number of times. If they continue to be immovable then it may continue to fall through.

On the mortgage front, we’ve done all we can:
- There were a few weeks of delays to start when Platform wouldn’t let us apply as they were changing rates and closed to applications. 

- A week of waiting for them to give the breakdown so we could approve and begin the proper application. 

- And then now since the survey we’ve chased and chased and our broker has repeatedly asked them to escalate. They say they will / have. 

- They’ve said it’ll be reviewed last week, in 48 hours etc etc. But now just say it’s with the underwriter and the underwriter says they have a lot of cases to review. 

That’s about it. I suspect the answer is just: all you can do is wait. The seller can do what they want. I’m not sure what other reply I’m hoping for… maybe just some sympathy..! 

No you can do more than wait, you can take control of the decisions that are within your gift.

Separate the mortgage timeline from the reality of what you know and do not know about the property.

What did it sell for before it was developed? 

How much is the mark up? Is it reasonable? Check the potential costs, locally, for an extension of that size and finish.

Is the development in line with the overall stature of the property in its surroundings, street, size of garden etc or has it been over developed? 

When you tried to undertake your due diligence was it for a reason, you had specific concerns, or just because everyone does it? 

You have tried numerous times to carry out your own research about the state of the property but you have been baulked by the vendor. You might consider it less than helpful or wilful and deliberate but there may be a pattern here. 

Having tried and been blocked do you know more about the fabric of the property now or are you still left with those areas of concern?

Given what you have posted here, I would be very wary about some of the risks and I would suggest that it might be good to allow it to go, especially as the developer will be looking to maximise their profit on the flip and if your funds to cover any surprises are limited.

trakky14

Gosh I feel for you that does seem very harsh, lots of lenders seem to be taking ages at the moment so it does seem a little unfair...hopefully you'll get some movement soon and you can still buy it. I can also understand their frustration....but by not discussing the remarketing with you does make me feel I'd be wary of them later on...did the estate agent not keep them in the picture? They sound like very difficult vendors...I wonder why it fell through before?