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Sale Agreed, Mortgage Drawn Down and No Keys! (Old thread)

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  • 18-04-2013 1:47pm
    #1
    MammaMurphy
    Registered Users Posts: 26 ✭


    Just wondering whether any1 knows how long it takes to get mortgage approval from KBC Banks these days.
    We are 2nd time buyers and have a property rented out for the next 10 years to the council.
    We have applied 4 weeks today and have been told over and over again that we will hear within the next few days.
    The banks have asked all there questions and we are still getting no answer from them.
    Getting very frustrated at this stage
    Any advice would be really appreciated.

    Many thanks


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    #2
    lyno9235
    Registered Users Posts: 24 ✭lyno9235


    I applied for a mortgage recently from various providers and got approval back in less than a week. KBC included.


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    #3
    MammaMurphy
    Registered Users Posts: 26 ✭MammaMurphy


    Are you a second time buyer??
    What % Rate did KBC offer you, do u mind me asking??


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    #4
    lyno9235
    Registered Users Posts: 24 ✭lyno9235


    Yes I am a second time buyer and I'm sorry but I don't have the KBC rate off the top of my head because I decided to go with AIB as their rates are cheaper.


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    #5
    MammaMurphy
    Registered Users Posts: 26 ✭MammaMurphy


    No problem thank you for your speedy reply, myself and my husband are so frsutrated at this time and just want an answer, aparently our application is waiting on a senior underwriter to look at it to make a decision.

    We have our savings to go off a property and we even lost out on a house as the banks were taking to long to decide on whether to give it to us or not, and are still deciding! Only looking for 155,000! Hopefully we will hear from them soon.


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    #6
    lyno9235
    Registered Users Posts: 24 ✭lyno9235


    Your situation sounds exactly like mine, was only looking for 150,000 and had a lot of savings also.

    I understand the banks are very careful nowadays but I really cannot understand the delay in your case if you meet the criteria, have passed all the stress tests etc.

    While you are waiting you should try AIB, BOI etc (if you haven't already). Explain your situation to them them and I would imagine they would have a quicker response.
    I had my approval back from AIB in three days!


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    #7
    Dortilolma
    Registered Users Posts: 255 ✭✭Dortilolma


    I heard there is a backlog in PTSB meaning you could be waiting 3 weeks for an answer. Any one else hear this?


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    #8
    MammaMurphy
    Registered Users Posts: 26 ✭MammaMurphy


    Can anyone help?
    We have sale agreed on a Negative Equity House sale 6 weeks ago. Our solicitor drew down our cheque as we were supposed to sign the middle of June and we still havent closed or have any time of when we will be signing. Vendor removed all furniture from house last week!

    Vendors solicitor has been telling our solicitor that they have been waiting on the funds and it all came to a head last week when we kept asking for news and they sent us an email saying that he still hasnt go loan approved! Which kicked us right down! So we are paying a mortgage on a property we dont have keys for!!

    His Loan application is apparently with the Underwriters of BOI, how long does it take to make a decision on a loan @ shortfall (personal loan to cover his negative equity on mortgage)??????

    we are getting frustrated now to say the least and are hoping that this will go through but when we dont know.

    Any comments/advice much appreciated!!


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    #9
    listermint
    Registered Users Posts: 33,970 ✭✭✭✭listermint


    MammaMurphy wrote: »
    Can anyone help?
    We have sale agreed on a Negative Equity House sale 6 weeks ago. Our solicitor drew down our cheque as we were supposed to sign the middle of June and we still havent closed or have any time of when we will be signing. Vendor removed all furniture from house last week!

    Vendors solicitor has been telling our solicitor that they have been waiting on the funds and it all came to a head last week when we kept asking for news and they sent us an email saying that he still hasnt go loan approved! Which kicked us right down! So we are paying a mortgage on a property we dont have keys for!!

    His Loan application is apparently with the Underwriters of BOI, how long does it take to make a decision on a loan @ shortfall (personal loan to cover his negative equity on mortgage)??????

    we are getting frustrated now to say the least and are hoping that this will go through but when we dont know.

    Any comments/advice much appreciated!!

    Your solicitor (if they are good) should be handling all of this for you, and promptly. Ideally you shouldnt have drawn down until his financial side was all resolved. Why did you draw down ? Your solicitor appears to be incompetent tbh.


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    #10
    MammaMurphy
    Registered Users Posts: 26 ✭MammaMurphy


    Solicitor drew down as we were supposidly closing on the 24th June 2013! As per the instructions of vendors solicitor saying that they were aiming to close 24th June!

    Then all of a sudden vendors loan application is with underwriters!
    That is now with them 6 weeks now at this stage!


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    #11
    listermint
    Registered Users Posts: 33,970 ✭✭✭✭listermint


    MammaMurphy wrote: »
    Solicitor drew down as we were supposidly closing on the 24th June 2013! As per the instructions of vendors solicitor saying that they were aiming to close 24th June!

    Then all of a sudden vendors loan application is with underwriters!
    That is now with them 6 weeks now at this stage!

    Your solicitor should not have done that until he had all financial documents in hand. Id be taking it up with them to press for results and find out whats going on. Your paying them enough for their service so get on to them directly. Not their secretary.


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    #12
    seamus
    Registered Users Posts: 68,317 ✭✭✭✭seamus


    Your solicitor has drawn down the funds but presumably is still holding onto them.

    Speak to your solicitor, it's time to give this other couple 4 weeks notice of your intention to withdraw from the sale and apply penalties for their failure to close.


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    #13
    MammaMurphy
    Registered Users Posts: 26 ✭MammaMurphy


    Our solicitor has given the vendors solicitor an email yesterday stating that we are sending back our cheque to the bank at the end of the week is no movement!

    But realistically if we do send back our cheque to the bank it will be harder for us to draw down again when needed! I presume they will ask for savings again in which we dont have as we have paid for a new kitchen, floors, tiles, paint etc!


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    #14
    roro2
    Registered Users Posts: 412 ✭✭roro2


    Potentially a nice little interest earner for your solicitor, he mightn't be in any rush to close now if he has your mortgage funds. "Aiming to close" is not reason enough to drawdown your mortgage.

    However, if the bank issued a cheque, the solicitor may only have the uncashed chequed and not your actual mortgage funds. Interest may not actually be accruing in this case and your mortgage hasn't really been drawn down. This is often the case with BOI mortgages.

    EDIT: It appears that your solicitor did just have the cheque. It shouldn't be a big deal to have the cheque re-issued, once your letter of offer hasn't expired.


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    #15
    MammaMurphy
    Registered Users Posts: 26 ✭MammaMurphy


    Heres hoping!

    No word from the vendors side since last wed!

    Surely it doesnt take this long for underwriters to make a decision??


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    #16
    Marcusm
    Registered Users Posts: 10,328 ✭✭✭✭Marcusm


    MammaMurphy wrote: »
    Heres hoping!

    No word from the vendors side since last wed!

    Surely it doesnt take this long for underwriters to make a decision??

    You should have refreshed your prior thread so people had all the background. I'm shocked that your solicitor still holds the money. I suspect, if it's got to this stage, that the sale may fail and you may need to look to your solicitor for compensation and may have to engage another solicitor. A vendor who gets to exchange without having his shortfall covered is one who is not in control of his finances. Your solicitor should have inquired of the vendor's solicitor as to funding the shortfall as soon as it became apparent; I have been the purchaser in 2 short sales of this type.

    You are the one who is being failed here and I feel sorry for you. However, the vendor should not have been allowed to proceed this far, his solicitor has allowed him to enter a contract without the means to fulfil it. Incompetence and potential misconduct.


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    #17
    MammaMurphy
    Registered Users Posts: 26 ✭MammaMurphy


    TBH our mortgage has kicked into place and came out on the 1st of July and is due to come out on the 1st August too and so on for the duration of our mortgage the same with our life insurance/house insurance!

    We are getting really peeved off now at this stage and the vendors solicitor is getting NO timeframe from the bank when they will release the funds to the vendors bank.

    so we are stuck in limbo now with paying a mortgage if we want to continue with the sale which is totally unfair to us.

    I would really love to get some word from the banks as to when they are going to release his funds because as soon as they release them we can get the keys.

    Getting totally irritated now and stressed out to bits and no1(solr or banks) seem to care how we are feeling!!


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    #18
    ted1
    Registered Users Posts: 23,532 ✭✭✭✭ted1


    MammaMurphy wrote: »
    I presume they will ask for savings again in which we dont have as we have paid for a new kitchen, floors, tiles, paint etc!

    Everthing screams premature about this, why would you have paid for a kitchen etc, when you don't even have a house?

    Is there a penalty clause in the contract, for not closing on the specifed date?


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    #19
    valleyoftheunos
    Closed Accounts Posts: 2,332 ✭✭✭valleyoftheunos


    Seems to me its the Vendor's solicitor who is at fault here. Admittedly the detail is scant but the vendor shouldn't have signed contracts when he did. the Purchaser may be able to claim damages for the delay.


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    #20
    MammaMurphy
    Registered Users Posts: 26 ✭MammaMurphy


    We have paid for a kitchen as we were told we were closing on the 24th June and we were told that the vendor has all the relevant documentation signed up.

    Then when we went to close the deal we were then told a load of lies and then last week were then told his loan application is now with the underwriters.

    Our solicitor has not received the one part of the contract from the vendors solicitor to bind us into a sale which is making us very very anxious now about the whole sale!

    We asked our Solr can we get a penalty clause and we were told NO as he has not returned the binding part of the contract!

    Dont know what to do now!!!!


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    #21
    roro2
    Registered Users Posts: 412 ✭✭roro2


    MammaMurphy wrote: »
    Our solicitor has not received the one part of the contract from the vendors solicitor to bind us into a sale which is making us very very anxious now about the whole sale!

    We asked our Solr can we get a penalty clause and we were told NO as he has not returned the binding part of the contract!

    Therefore, your solicitor should never have drawn down the mortgage.


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    #22
    valleyoftheunos
    Closed Accounts Posts: 2,332 ✭✭✭valleyoftheunos


    MammaMurphy wrote: »
    We have paid for a kitchen as we were told we were closing on the 24th June and we were told that the vendor has all the relevant documentation signed up.

    Then when we went to close the deal we were then told a load of lies and then last week were then told his loan application is now with the underwriters.

    Our solicitor has not received the one part of the contract from the vendors solicitor to bind us into a sale which is making us very very anxious now about the whole sale!

    We asked our Solr can we get a penalty clause and we were told NO as he has not returned the binding part of the contract!

    Dont know what to do now!!!!

    If the other side hasn't signed contracts the mortgage shouldn't have been drawn down. OP There has been a big mistake made here by one or both Solicitors (most likely you're own it seems now). Get some explanations, go to the Law Society if necessary.


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    #23
    Mrs OBumble
    Registered Users Posts: 25,955 ✭✭✭✭Mrs OBumble


    MammaMurphy wrote: »
    We have paid for a kitchen as we were told we were closing on the 24th June and we were told that the vendor has all the relevant documentation signed up.

    Who did you pay, and where is the kitchen now?


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    #24
    MammaMurphy
    Registered Users Posts: 26 ✭MammaMurphy


    I paid the money to Kitchen place and the kitchen is now on hold for delivery until we get the keys.

    I am getting really upset and anxious now today as i havent had any response from vendors solicitors since last wednesday.

    Surely it doesnt take more than a week to get response from his bank re: his LOAN!

    Im hoping that he gets word from the Underwriter today because as far as i have been told he has everything left into the banks that they requested!!

    Going to pull my hair out now at this stage!!!!!!!!!!!!!


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    #25
    ABajaninCork
    Closed Accounts Posts: 8,411 ✭✭✭ABajaninCork


    Get on to the Law Society. See what they have to say.


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    #26
    roro2
    Registered Users Posts: 412 ✭✭roro2


    MammaMurphy wrote: »
    Surely it doesnt take more than a week to get response from his bank re: his LOAN!

    Im hoping that he gets word from the Underwriter today because as far as i have been told he has everything left into the banks that they requested!!

    Going to pull my hair out now at this stage!!!!!!!!!!!!!

    You shouldn't really be getting caught up with this aspect. Of course it could take more than a week - you don't know what his circumstances are. The bank could even decline his application, at which point the sale will fall through.

    Which brings you back to the main issue - your solicitor has drawn down your mortgage when they don't even have a valid signed contract and there is a real risk that the vendor may not be able to complete the sale (requires bank permission). Without binding contracts, there is even nothing to stop the vendor simply changing his mind and pulling out. Therefore, your issue is with your solicitor not the vendor's bank.


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    #27
    MammaMurphy
    Registered Users Posts: 26 ✭MammaMurphy


    This will be week 7 on Thursday that we have signed our contracts for our house.
    The vendor is still waiting on his Negative Equity loan to be approved from BOI.
    The last excuse i was given was that the Bank Official that was dealing with his application is on holidays. Surely it gets passed to some1 else while they are on holidays.

    We are sick of being fobbed off at this stage.
    Any recommendations from any1 will be grateful!!!!

    We are getting unbelievably stressed out now about the whole situation, because as soon as he gets his loan we can get our keys and are praying everyday that we get word.
    We just hope that he doesnt get refused as it would be soul destroying to us as it is our dream home.

    What do we do? Do we keep haunting his solicitor to get word or should we leave it be and let it take its course???

    :mad:


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    #28
    Marcusm
    Registered Users Posts: 10,328 ✭✭✭✭Marcusm


    No offence but this is the third thread; it would be easier for you to update the original threads so the full history is there.

    My advice remains the same; your solicitor is at fault for drawing down your mortgage and you need to impress this fact on him. You don't even have a signed contract and even if the vendor gets their NE loan, they could legally pull the putative sale. You have no other action than to agitate your solicitor, this is all of his making.


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    #29
    roro2
    Registered Users Posts: 412 ✭✭roro2


    MammaMurphy wrote: »

    What do we do? Do we keep haunting his solicitor to get word or should we leave it be and let it take its course???

    :mad:

    As Marcusm said. Plus I hope this is a typo and you mean your solicitor.


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    #30
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    Your solicitor should be doing all the work here. You have thread on this already and mortgage was prematurely drawn down by sounds of it and your solicitor should be sorting this.


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    #31
    MammaMurphy
    Registered Users Posts: 26 ✭MammaMurphy


    Am quite new to all of this Boards.ie only the last couple of weeks so im not entirely sure how to update my last status!! So sorry about that.

    No roro2 it is not a typo, i have my solicitor haunting HIS solicitor every day of the week because we are stressed out over all this now at this stage.


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