Buying a house in Negative Equity

on_my_oe

thedriver wrote:

I think I'd need to see that letter before taking an
I have seen a few neg equity houses in the past but they all had their letter of consent ready.

HouseHunter13 wrote: »

I think I'd need to see that letter before taking anybody's word for it!

We were told repeatedly by our vendor and the estate agent it was in place, so we paid the deposit and undertook the surveys.. It took four months for the vendor to admit it wasn't, and we are still waiting seven months on now, facing our third rent increase this year.

HouseHunter13

on_my_oe wrote: »

We were told repeatedly by our vendor and the estate agent it was in place, so we paid the deposit and undertook the surveys.. It took four months for the vendor to admit it wasn't, and we are still waiting seven months on now, facing our third rent increase this year.

I was 4/5 months in before any NE was mentioned, EA insisted delays were down to the divorce

I've pretty much given up now

Dopsche

So have I. As my solicitor don't even come back on my emails anymore, I don't have much hope. I better bite the bullet and look for something new. Especially that my lease is up and prices will rise further.

So pissed off with that.

TheDriver

That's another category to stay away from-split Ups. So glad we pulled out now tho still waiting for my deposit back......EA probably still thinks he can sort it!!

iguana

on_my_oe wrote: »

We were told repeatedly by our vendor and the estate agent it was in place, so we paid the deposit and undertook the surveys.. It took four months for the vendor to admit it wasn't, and we are still waiting seven months on now, facing our third rent increase this year.

Are you moving rental house each time? It's against the law for your rent to be increased more than once a year.

on_my_oe

No, we're not - just a chancer of an agent who doesn't like women and/or foreigners. I've logged a complaint with the PTRB and am waiting for the case to come up.

In the meantime we are hoping to get contracts ready for our second choice property by the end of the month, so we can withdraw from the first NE property.

Mr.McLovin

I often wonder were the first few well publicised write downs (which seemed quite attractive and generous) were just a ploy to get people engaging with their lenders...

my friend has pulled out of his purchase on Friday with little resistance from the EA

TheDriver

or maybe not even write downs but getting an unsecured loan to bridge the gap. Which of course the bank may not want to do because the person can't actually afford even the bridging loan. Make no doubt about it, banks don't care about NE or the like, particularly as long as people are paying their mortgages

on_my_oe

We have been notified our vendor has withdrawn as the bank has refused permission to sell - seven months after being promised 'Consent to Sale' had already been granted and was resting with their solicitor, just waiting for a willing purchaser.

Fortunately we got cynical after four months and kept looking, and have a second property in the wings. It still grates on me that spent the money on a valuer, surveyor, a plumbing inspector and legal fees, plus prices have gone up, so the game playing has probably cost us €30,000.

2013Lara

on_my_oe wrote: »

We have been notified our vendor has withdrawn as the bank has refused permission to sell - seven months after being promised 'Consent to Sale' had already been granted and was resting with their solicitor, just waiting for a willing purchaser.

Fortunately we got cynical after four months and kept looking, and have a second property in the wings. It still grates on me that spent the money on a valuer, surveyor, a plumbing inspector and legal fees, plus prices have gone up, so the game playing has probably cost us €45,000.

I'm so sorry ;(

It shouldn't be you out of pocket. So frustrating. It shouldn't be allowed happen.

Our situation has taken a massive backwards step. After the phonecall that the consent was in, we drew the mortgage down and sent the contracts to the other side. Nothing back since. The bank had apparently told the vendor he could sell and sort his negative equity issues afterwards, and then back tracked and said he could sell but there would then be no negotiations.

So we now do not know where we stand once again. I'm extremely angry, frustrated, upset. It is really affecting me now at this stage. After all that relief to be told that, no, actually it may not happen, is killing us. The bank have a lot to answer for. Do they not realise that this is ruining people's lives?

I work from home. If I lose this house, I lose my work. I won't get any help from the government. This is more than a house to us. If the sale doesn't go through, I won't go down without a massive fight.

jfmac

Hi everyone
I came across these posts today and i dont know weather to feel even more anxious that some of ye are still waiting or relieved that some of ye have gotten consent:/
Our situation is this... we saw house, put offer in end of may. offer accepted. Contracts drawn up etc, got valuation, engineers report etc sorted. Signed contracts. Paid 10% deposit. Was told by our solicitor that closing date would be in two weeks, then another two weeks..
Only found out a few days ago that house is in neg equity and the vendors are waiting on letter from bank.
Truly sickened to say the least.. And angry that we are only finding out about this now.
Our solicitor recommended that we give them 2 weeks notice to get sorted. We agreed but now am afraid wel lose the house.
Any tips or advice on what to do? Apparently our EA didn't know it was in neg equity. Surely vendors should have said???

TheDriver

There should have been conditions in contract detailing this neg equity as now you can sue then for delay IF it says that in the contract. A solicitor should have spotted all this however. ...in my case it was glaring out of the contract that consent was currently being sought from bank

evolving_doors

Id hazzard a guess that Banks are purposfully scuppering the efforts of people who are in negative equity.
It benefits them for you to be paying off the debt of course,but more importantly, if there are lots of sales falling through then theres only one way that property prices can go. Every little percent increase in price has a massive effect on the value of their loan book.
The best thing that banks can do now is do nothing and wait for prices to rise.

I would also hazard a guess that those seeking to keep their mortgage and move with NE would be still linked into the low interest rates/trackers. Maybe if you just about eliminate the NE with price rises then the bank can shtick you onto a new mortgage at higher interest rates too. Again, best way to do this is wait. A few percent here and there is worth billions considering their overall loan book...(which we've helped them clear any way with our public recapitalisation).

Diane Selwyn

2013Lara wrote: »

I'm so sorry ;(

It shouldn't be you out of pocket. So frustrating. It shouldn't be allowed happen.

Our situation has taken a massive backwards step. After the phonecall that the consent was in, we drew the mortgage down and sent the contracts to the other side. Nothing back since. The bank had apparently told the vendor he could sell and sort his negative equity issues afterwards, and then back tracked and said he could sell but there would then be no negotiations.

So we now do not know where we stand once again. I'm extremely angry, frustrated, upset. It is really affecting me now at this stage. After all that relief to be told that, no, actually it may not happen, is killing us. The bank have a lot to answer for. Do they not realise that this is ruining people's lives?

I work from home. If I lose this house, I lose my work. I won't get any help from the government. This is more than a house to us. If the sale doesn't go through, I won't go down without a massive fight.

That must be so hard to deal with! Its a crying shame that faceless corporations can have such an impact on people's quality of life and sense of security not to mention health and ability to plan for the future etc etc. I hope you are close to getting it sorted finally!

on_my_oe

We had very excuse under the sun during our process, and for us its a case of 'once bitten, twice shy', although difficult if vendors aren't communicating honestly with their estate agent, let alone would be purchasers.

Unfortunately TDs don't think negative equity issues are affecting sales, so any potential purchasers are liable to be the losers.

In our case, our losses are €19,000 higher purchase price (our second choice in the same area increased during the seven months waiting), €3,200 various fees including surveyor etc, €7,600 rent... So less than my initial guesstimate but €30,000ish is still a lot. Consent to Sale needs to be agreed between the vendor and the bank prior to the property being listed for sale at a price acceptable to the bank; if a purchaser is unwilling to meet the price, then the bank and the vendor may need to revisit the 'Consent to Sale' value at a later date, but at least it stops the innocent party - the wouldbe purchaser - getting screwed over.

HouseHunter13

on_my_oe wrote: »

We have been notified our vendor has withdrawn as the bank has refused permission to sell - seven months after being promised 'Consent to Sale' had already been granted and was resting with their solicitor, just waiting for a willing purchaser.

Fortunately we got cynical after four months and kept looking, and have a second property in the wings. It still grates on me that spent the money on a valuer, surveyor, a plumbing inspector and legal fees, plus prices have gone up, so the game playing has probably cost us €30,000.

Sorry to hear this.

Being in the same boat that's what kills me the most, not just all the time wasted the amount of money it costs. 30k might be pocket change to some but that's a years wages for most.

2013Lara wrote: »

I'm so sorry ;(

It shouldn't be you out of pocket. So frustrating. It shouldn't be allowed happen.

Our situation has taken a massive backwards step. After the phonecall that the consent was in, we drew the mortgage down and sent the contracts to the other side. Nothing back since. The bank had apparently told the vendor he could sell and sort his negative equity issues afterwards, and then back tracked and said he could sell but there would then be no negotiations.

So we now do not know where we stand once again. I'm extremely angry, frustrated, upset. It is really affecting me now at this stage. After all that relief to be told that, no, actually it may not happen, is killing us. The bank have a lot to answer for. Do they not realise that this is ruining people's lives?

I work from home. If I lose this house, I lose my work. I won't get any help from the government. This is more than a house to us. If the sale doesn't go through, I won't go down without a massive fight.

I really can't believe this, I'm lost on what to say.

Its so wrong on what is happening here. I'd fight this, I'd refuse to move and make my case public, I hope to god it doesn't come to drastic action like that as you really don't deserve it, fingers crossed it sorts itself out.


......................

I've just passed the 13 month mark myself, I'm pretty much priced out of the market now so i'll hang in there for the miracle not that I'm holding my breath.

gmisk

These are absolutely horrible situations to be in (believe me I know! sale agreed for a year and vendor pulled out with a 2 line fax).
I really hope they work out for you folks

riclad

SInce aib, and boi are 99 per cent owned by the government,can,t there be a rule,or a voluntary agreement,
IN cases of negative equity sale ,
The banks will say if offered say x amount we will sell the house ,
if the offer is reasonable ,in regard to the house value now, and the estate agent will know this amount eg 150k.
IF a buyer offers 150 k, the house will be sold,
if the bank has an agreement to recieve x amount to cover negative equity from the mortgage holder.
AN offer on the house will only be accepted if the resident and the ,bank, agree on it and the banks knows how much it will get to cover some ,or all of the negative equity loan .

Since 1000s of houses are in negative equity this will help ,free up the market and make more houses avaidable to buyers.

Banks will let the agent know we will accept a reasonable offer ,
and we will let the sale proceed ,in agreement with the mortgage holder .
eg they could say,we wont accept ,less than 100k, on house x,
The seller and potential buyer wont know this amount .
if someone offers 130k, or 105k the sale will go thru.

This will stop people wasting time, and money on surveys ,
while the bank goes back and forth over how much it wants for the house.
The banks will have to accept or reject any offers within 2 weeks of recieving them from the estate agent .

This could be a voluntary agreement but it,ll be done under the authority by the central bank to make sure it is being applied to all house sales .

TheDriver

I thought this can be done but vendors choose not to bother going through the process until,a buyer is roped in.

also being state owned doesn't mean they can be influenced by politicians etc as that's what got us into this place initially

Mr.McLovin

government doesn't give a crap, it just adds to the 'frenzy' which they seem happy enough to fuel

not enough votes in it for anyone to care either

buyer beware!

HouseHunter13

Just wondering is there anyone still left hanging hoping their NE sale to complete?

Ms2011

Not a NE house but a repossessed one. 9 months & counting:mad::(

TheDriver

Receiver or bank? Heard banks are long sales but receivers can act quickly to get their money in

coll30

HouseHunter13 wrote: »

Just wondering is there anyone still left hanging hoping their NE sale to complete?

Still waiting since march contracts were to be issued in June but still no sign . Had to move in with folks as my own house was sold and didn't want to lose my buyers

Ms2011

TheDriver wrote: »

Receiver or bank? Heard banks are long sales but receivers can act quickly to get their money in

Bank (PTSB). The house is one of several houses repossessed from the same person, the Revenue are involved & won't give the go ahead to sell my house until issues with all the houses are resolved.
Tbh I've more or less given up hope on it, I've kept my deposit on it as I look around at other houses ( I've a viewing on Friday ). I'm a cash buyer so I've no mortgage deadline plus I already own the house I'm living in so no real hurry to move, though I'd like to be settled somewhere new by the time my son starts school in 2 years.

iguana

Still no sign of written confirmation of the consent to sale from the vendor's bank. My solicitor has advised me that the vendors solicitor have told her that they have formal consent and will have it to her in writing before the end of the week. Has anyone had this happen? It's all so frustrating.

2013Lara

iguana wrote: »

Still no sign of written confirmation of the consent to sale from the vendor's bank. My solicitor has advised me that the vendors solicitor have told her that they have formal consent and will have it to her in writing before the end of the week. Has anyone had this happen? It's all so frustrating.

We were told this over a month ago, mortgage drawn down etc, yet still waiting. Hopefully you'll be more lucky than I have been.

coll30

iguana wrote: »

Still no sign of written confirmation of the consent to sale from the vendor's bank. My solicitor has advised me that the vendors solicitor have told her that they have formal consent and will have it to her in writing before the end of the week. Has anyone had this happen? It's all so frustrating.

Was told this beginning of June and contracts were to be sent out but still no sign

TheDriver

I had this in June, promised everything would be ready tomorrow. Alas tomorrow never came. We pulled out and they still kept trying to persuade us of the impending consent. Comical.....

pulling out was best decision for our sanity

HouseHunter13

coll30 wrote: »

Was told this beginning of June and contracts were to be sent out but still no sign

I got contract sent out in March, you can sign it but it wont make any difference they will not be able to sell without the consent which may never come, approaching 14 months sale agreed now, I feel like an idiot tbh