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Bought House and now don't know if I can proceed

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  • 08-02-2009 8:25pm
    #1
    TommyMartin
    Closed Accounts Posts: 4 ✭


    Hello,

    I purchased a house about 6 months ago. A contract was signed and a substantial deposit was paid. A couple of weeks ago my mortgage expired. Now instead of 92% the bank will only give me 80%

    I dont have the remaining 12% to proceed. Can i walk away?

    Also the house is not worth what is was when i bought it. The builder has offered to go guarator to ensure i get the other 12% providing i go with his bank. He said i can have the house valued in 5 years and if the price has dropped (up to 15%) he will wipe this off the loan.

    Is this a good deal? Should i not get the 15% off the price now?


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    #2
    ntlbell
    Registered Users Posts: 16,288 ✭✭✭✭ntlbell


    contact your solicitor there has been a few of these posts recently

    in general you can probably walk away and lose the deposit. will come down to what sort of contract you signed, the builder in question and how good your solicitor is.


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    #3
    ntlbell
    Registered Users Posts: 16,288 ✭✭✭✭ntlbell


    just to add be very weary of these deals anything can happen maybe he'll go bust before the end of the 5 years etc and you will have no come back

    be very very careful


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    #4
    TommyMartin
    Closed Accounts Posts: 4 ✭TommyMartin


    Yes i've been advised by some to be careful.

    If its possible i want the 15% off the price now. If not (and i can legally walk away) I think i'll pull out and look for a bargain


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    #5
    bleary
    Registered Users Posts: 495 ✭✭bleary


    youve signed contracts ,the builder is entitled to sell the house for what he can get and pursue you for the balance You can not walk away and just lose your deposit. the builder may decide not to pursue you but thats their choice


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    #6
    Victor
    Registered Users Posts: 78,392 ✭✭✭✭Victor


    bleary wrote: »
    youve signed contracts ,the builder is entitled to sell the house for what he can get and pursue you for the balance You can not walk away and just lose your deposit. the builder may decide not to pursue you but thats their choice
    On the contrary, contracts often have clauses that make the contract subject to funding.

    OP, talk to your solicitor and then you bank to see if something can be arranged. But of course, if things are that difficult, you have to ask is it wise to proceed.


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    #7
    TommyMartin
    Closed Accounts Posts: 4 ✭TommyMartin


    I had a feeling it wasnt that simple. So how does that work? I signed a contract on the basis that i had a mortgage ( i did have one) now i dont have one.

    Its hardly my fault the country fell apart


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    #8
    ntlbell
    Registered Users Posts: 16,288 ✭✭✭✭ntlbell


    TommyMartin wrote: »
    I had a feeling it wasnt that simple. So how does that work? I signed a contract on the basis that i had a mortgage ( i did have one) now i dont have one.

    Its hardly my fault the country fell apart

    It's not the builders fault either.

    Again talk to your solicitor he will be able to tell you exactly where you stand

    we cannot.


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    #9
    Victor
    Registered Users Posts: 78,392 ✭✭✭✭Victor


    TommyMartin wrote: »
    So how does that work?
    If nobody will give you a loan, then you don't have to go through with the contract. But talk to your solicitor and keep away form loan sharks.


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    #10
    uncanny
    Registered Users Posts: 64 ✭✭uncanny


    TommyMartin wrote: »
    Hello,

    I purchased a house about 6 months ago. A contract was signed and a substantial deposit was paid.

    If you signed a contract 6 months ago and had mortgage approval in place, how come the purchase did not go through yet?

    Was the house not ready or something?


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    #11
    Fighting Irish
    Registered Users Posts: 7,065 ✭✭✭Fighting Irish


    Don't buy into anything, prices are still dropping by the day


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    #12
    pigeonbutler
    Registered Users Posts: 666 ✭✭✭pigeonbutler


    Depends on the terms of the contract and whether there was any room in it for one side or other to break out in certain circumstances.

    Be aware that the courts have been busy lately with sellers of houses seeking specific performance (i.e. a court order forcing you to follow through on the purchase at the agreed price) so think very hard and seek legal advice before attempting to walk away from the deal.


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