Seller under threat of repossession, refuses to move forward on sale

Blue_Boston

I'm trying to purchase a property that I recently found out the vender's mortgage is in arrears.  Property was put on sale Fall 2023. My offer was accepted early May 2024. I've got my mortgage in hand, the searches are complete and the survey is done - all sorted on my end.

The seller has been *really slow* responding to enquiries. A few weeks ago the EA had to go to the sellers house to help fill out forms and reply to some of the enquiries. The seller agreed to aim for exchange at the end of August. Enquiries still have not been sent to my solicitor.

A couple weeks ago the estate agent told me that some of the delay was related to the vendor's bank needing an update on some forms in case of repossession. Basically the seller had to put the house on the market because their mortgage is in arrears. The estate agent said the vendor's solicitor has to update the lender every two weeks as to the progress of the sale.  I have no idea if that's actually true.

I get a text from the EA a week ago that the seller is being difficult and refuses to move forward with the sale. Won't respond to enquiries, won't sign anything. Just refusing to engage.

I feel like I'm in a stalemate. 

How long before the bank essentially forces a sale? It sounds like the bank has already given the vendor over a year to sell and settle their debt. When does the vendor's solicitor have to update the lender that the sale is no longer moving forward because they refuse to sell?

theartfullodger

Look up lender for £3 on gov.uk land registry and write to them confirming you are willing & able to buy.

Unlikely but they may just respond.

anselld

It sounds like the Seller is not motivated to sell and is simply stalling for time if not completely in denial.  Does the vendor actually have somewhere else to live?  It is going to be difficult for them to agree a sale if they have nowhere to go despite the mortgage co breathing down their necks.

The mortgage company cannot force a sale.  They would need to apply through the Courts for reposession and then sell once they have gained posession.  They may or may not still wish to proceed with your offer at that point.

It sounds very much like you should put this one on hold and look for alternatives.

user1977

theartfullodger said:

Look up lender for £3 on gov.uk land registry and write to them confirming you are willing & able to buy.

Unlikely but they may just respond.

How would that assist any? The lender can’t force their borrower to proceed (any more than they already are). And they can’t do a private deal with the OP.

Blue_Boston

anselld said:

It sounds like the Seller is not motivated to sell and is simply stalling for time if not completely in denial.  Does the vendor actually have somewhere else to live?  

The vendor has family that are trying to help with the sale and have agreed to house them.

Blue_Boston

theartfullodger said:

Look up lender for £3 on gov.uk land registry and write to them confirming you are willing & able to buy.

Unlikely but they may just respond.

I sort of already did that. I called the lender and said the sale had stalled and I was still very interested in buying.

I just don't know how long until they start with a the court process and get an order of possession. What obligation does the seller's solicitor actually have to the lender to update them about the sale and the vendors refusal to proceed?

user1977

Blue_Boston said:

theartfullodger said:

Look up lender for £3 on gov.uk land registry and write to them confirming you are willing & able to buy.

Unlikely but they may just respond.

What obligation does the seller's solicitor actually have to the lender to update them about the sale and the vendors refusal to proceed?

None at all, it’s entirely up to their client.

Blue_Boston

user1977 said:

Blue_Boston said:

theartfullodger said:

Look up lender for £3 on gov.uk land registry and write to them confirming you are willing & able to buy.

Unlikely but they may just respond.

What obligation does the seller's solicitor actually have to the lender to update them about the sale and the vendors refusal to proceed?

None at all, it’s entirely up to their client.

So the estate agent saying the vendor's solicitor is having to update the lender every two weeks is likely nonsense?  I think the estate agent is making stuff up but I just have no idea how repossession works or mortgage arrears works.

user1977

Blue_Boston said:

user1977 said:

Blue_Boston said:

theartfullodger said:

Look up lender for £3 on gov.uk land registry and write to them confirming you are willing & able to buy.

Unlikely but they may just respond.

What obligation does the seller's solicitor actually have to the lender to update them about the sale and the vendors refusal to proceed?

None at all, it’s entirely up to their client.

So the estate agent saying the vendor's solicitor is having to update the lender every two weeks is likely nonsense?  I think the estate agent is making stuff up but I just have no idea how repossession works or mortgage arrears works.

It’s the borrower who is expected to do so, possibly via their solicitor - I was just meaning that the solicitor doesn’t have some sort of professional obligation to comment beyond what their client wants them to.

Wes121708

The lendor may be delaying repossession if there is already a sale in place to save on unnecessary costs in applying for a possession order, if they don't have one already. They may want updates from the seller every two weeks to check progress and if not progressing, continue with litigation action.
Do you know if a possession order has already been granted? The vendors solicitor will know if they are providing the updates to the lender.
Or the lender may be assisting a sale instead of repossession.

CosmicDaisy

I think I'd be walking away from this one. Far too much drama and delaying from a vendor who clearly doesn't want to sell and probably feels pressurised by the family into doing so. It doesn't sound worth the hassle waiting any longer. Perhaps just tell them you are pulling out to see if it forces their hand?