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Borrowers unable to get mortgages on repossessed properties says Law Society - today

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  • 22-07-2013 3:30pm
    #1
    Woodville56
    Closed Accounts Posts: 1,643 ✭✭✭


    Just read in today's Times -
    " Law Society has said there are difficulties with the contracts of many repossessed properties that make them incapable of being mortgaged ".......
    "The Society has written to the Irish Banking Federation to warn the organisation if the situation does not improve it will advise solicitors not to act for purchasers of repossessed properties in cases where clients need mortgages"......
    "The society said some of the contracts it's conveyancing committee has seen have been restrictive in the extreme.They exclude the usual title warranties.....they also exclude the usual planning warranty"

    Any comments? Anyone know what this is about ??


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    #2
    EbanEmael
    Site Banned Posts: 13 ✭EbanEmael


    Woodville56 wrote: »
    Just read in today's Times -
    " Law Society has said there are difficulties with the contracts of many repossessed properties that make them incapable of being mortgaged ".......
    "The Society has written to the Irish Banking Federation to warn the organisation if the situation does not improve it will advise solicitors not to act for purchasers of repossessed properties in cases where clients need mortgages"......
    "The society said some of the contracts it's conveyancing committee has seen have been restrictive in the extreme.They exclude the usual title warranties.....they also exclude the usual planning warranty"

    Any comments? Anyone know what this is about ??

    When a property is repossessed the bank cant answer certain questions such as those concerning boundary disputes. The result is they insist that the buyer take his chances. the same banks will not lend on a property unless they are guaranteed there are no boundary disputes.
    The banks want fresh capital invested. they don't want to repossess a property and then lend the money realised from the sale to someone else to buy it. They are anxious to repair their balance sheets.


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    #3
    xper
    Registered Users Posts: 1,068 ✭✭✭xper


    This issue was raised on the thepropertypin.com last week. Nice to see the press catch up!
    EbanEmael wrote: »
    When a property is repossessed the bank cant answer certain questions such as those concerning boundary disputes. The result is they insist that the buyer take his chances. the same banks will not lend on a property unless they are guaranteed there are no boundary disputes.
    Is that can't or won't? If they already checked out the property's paper work when the first, defaulting loan was agreed and they even have all that paper work on file (yeah, I know the stories), how can they suddenly turn around and claim they don't know what the fcuk they're selling to you?
    Surely the law should compel financial institutions to carry out transactions responsibly and not have this take it or leave it ****e. Oh wait, of course, that would be sensible and protecting the citizen rather than the Vested Interests.
    The banks want fresh capital invested. they don't want to repossess a property and then lend the money realised from the sale to someone else to buy it. They are anxious to repair their balance sheets.
    But isn't lending the money out again on a new performing mortgage with sensible, non-boom criteria one of the ways that a retail bank is supposed to make money? The damage is already done to the balance sheets when they crystalise the losses of the old loan by repossessing the property (presuming its well into negative equity). Not loaning the money out again doesn't fix that. If they are that desperate for cash, it s only a matter of time before they collapse. ... Oh ... wait (again)!


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    #4
    Sunny Dayz
    Registered Users Posts: 5,382 ✭✭✭Sunny Dayz


    This is exactly where we are stuck at the minute. Solicitor got the contracts at the start of June, he called us into the office a few days later to say it was one of the worse contracts he had ever seen. A lot of clauses precluding us from asking anything about the property, references to maps, schedules etc which weren't included.
    We knew when buying the property it was "buy as is" and we thought that was to do with the physicals of the building, but seems it also refers to the legal aspect of it also.
    Our solicitor wrote back a long listing of pre-contract queries, a lot of which were in relation to the planning and we are still waiting to hear back from the vendors solicitor. But as it stands, our solicitor won't let us sign the contract and he won't sign the required docs for the mortgage. We are now getting more disappointed as we have come so far along in this purchase, and it has been a very slow process.


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