Buying a house in Negative Equity

2013Lara

Well, after posting this thread 17 months ago, our sale is finally closing today. I will never do it again. I'll enjoy this Christmas safe in the knowledge that we are now secure and can get on with the rest of our lives.

If anyone needs any info or advise feel free to PM me as thankfully this will be my last time having to post in here, yahoooo, time to forget it all now

phater phagan

2013Lara wrote: »

Well, after posting this thread 17 months ago, our sale is finally closing today. I will never do it again. I'll enjoy this Christmas safe in the knowledge that we are now secure and can get on with the rest of our lives.

If anyone needs any info or advise feel free to PM me as thankfully this will be my last time having to post in here, yahoooo, time to forget it all now

Congratulations 2013Lara. A big relief no doubt. Best wishes on your successful conclusion, and much happiness in your new home. I'm at 13 months now - my solicitor tells me that there is some light at the end of the tunnel.

gmisk

Congrats 2013Lara! Well deserved!!!!!

Ms2011

17 months!!! Wow, almost 13 months here so it gives me some home, congrats on getting everything sorted, hope I can say the same soon!

simpson80

congratulations 2013lara. long term follower of this post any you really deserve to finally get sorted. long and happy future. Well done

ABajaninCork

Joining this late, but out of curiosity...

What's the procedure when buying a house in NE? Does the vendor have to obtain permission to sell from the bank first?? And can a verbal agreement be acted upon to sell if nothing is in writing???

phater phagan

ABajaninCork wrote: »

Joining this late, but out of curiosity...

What's the procedure when buying a house in NE? Does the vendor have to obtain permission to sell from the bank first?? And can a verbal agreement be acted upon to sell if nothing is in writing???

Yes the bank that holds the mortgage on the NEM property will need to approve the sale. Read all the input in this forum before you commit, because it will most likely be a long haul for you and you will need great patience - and a very good solicitor.

ABajaninCork

Thank you for that. Very useful.

I have another question though. Can the vendor act to sell the property on a 'verbal' agreement? Or would they have to wait for written approval??

phater phagan

I'm not 100 percent certain - but I would be very surprised if the vendor could do that. I'd tread very carefully if someone is proffering that idea to you.

ABajaninCork

Not me personally, but it's happening to someone I know. From reading this thread, and doing some research of my own, it doesn't look like good news. Vendor basically sprang this on them at the last minute, and claims he had a verbal agreement to sell. Personally, I smell BS.

Ms2011

Got word today the bank has finally accepted our offer & the contracts are on route to our solicitors. After 13 months I still won't believe it until the keys are in our hands!!

ABajaninCork

Fab news Ms2011 - Just in time for Christmas!!

Following on from my last post, sadly the sale fell through. Seems I was (unfortunately) right. The vendor couldn't sell and had no permission from the bank to do so.

phater phagan

Fingers crossed Ms2011 for you. Keep us informed about your progress.

Marcin Z

Ms2011 wrote: »

Got word today the bank has finally accepted our offer & the contracts are on route to our solicitors. After 13 months I still won't believe it until the keys are in our hands!!

Congratulations!

I gave up on the previous apartment because I haven't heard back from receivers.

In the mean time my other offer was accepted and I paid deposit straight away.
That was two weeks ago.. my solicitor hasn't heard anything back since.
I know that property is in negative equity and I've been told that bank is involved.
However, my offer was accepted by the vendor over the weekend and don't know what role plays the bank in this.
My solicitor said once we get a contract we find out who is involved in.

How long usually does it take to get that contract? Does it have to be approved by the bank before releasing to my solicitor?

on_my_oe

ABajaninCork wrote: »

Thank you for that. Very useful.

I have another question though. Can the vendor act to sell the property on a 'verbal' agreement? Or would they have to wait for written approval??[/QUOT.E]

They can list it for sale, but it can't proceed to closing without the banks permission - we were buying a property where they swore they had permission in writing from the bank already in place, but seven months later it fell over as they didn't. I personally believe that this should have to be agreed between the vendor and the bank before an agent can list a property, but the local TDs don't share my thoughts

on_my_oe

Marcin Z wrote: »

Congratulations!
I know that property is in negative equity and I've been told that bank is involved.
However, my offer was accepted by the vendor over the weekend and don't know what role plays the bank in this.
My solicitor said once we get a contract we find out who is involved in.

How long usually does it take to get that contract? Does it have to be approved by the bank before releasing to my solicitor?

If your purchase price is less than the outstanding value of the mortgage, you'll be waiting a while as the vendor and the bank will need to agree on what happens to the remaining debt - if they can't come to an agreement, then the bank will say No, and you'll be starting your search again.

If your purchase price clears the debt, then it's mostly a formality

millionmystery

Hi,
I bid on a house nearly two weeks ago. I was told by the estate agent that the owner had made a deal with the bank and just had to get the price stated or above it. I bid the following week, and having heard nothing back I rang and increased my bid (stupidly I know as I was bidding against myself, but I felt as the offer was just under the asking price I would go up 2 grand, leaving just 3k less than price stated). He asked if I was a cash buyer (Im not but have mortgage approval) and that he'd forward the bid but asked to get closer to the amount he needed 'will you go up any more, just so I can secure this' to which I said no that the bid was my offer and that was it. Now its nearly two weeks and Ive heard nothing at all. Im just wondering if this is normal.
I see you all have lots of experience of this so any advice would be helpful as Im fairly clueless at this!

leinster93

wrote:

I'm not sure if it's your best option but you could call the estate agents bluff and phone him up and say that you need confirmation whether or not your bid has been accepted. You could say that you need to know as you have another house which you have bid on... It's a poker game at the end of the day.

HouseHunter13

18 months still sale agreed (technically) as the deal is dead in the water but no deposit has been returned (long story)


delighted to hear lara got her house by the way, hope her and her family have a great first Christmas and of course many more to come!

househunter1315

phater phagan

HouseHunter13 wrote: »

18 months still sale agreed (technically) as the deal is dead in the water but no deposit has been returned (long story)

househunter1315

Sorry to hear that househunter. I hope that you can recover your money. It really is appalling the way the property industry is run and its laissez Faire attitude is desperate. After 14 months I have finally had an engineer ( vendor's side) come to do a Land Compliant map - which was holding up the deal. I am hopeful that after, what seems an interminable time, to be nearing the end of this tortuous procedure. Best of luck to you.

ABajaninCork

HouseHunter13 wrote: »

18 months still sale agreed (technically) as the deal is dead in the water but no deposit has been returned (long story)


delighted to hear lara got her house by the way, hope her and her family have a great first Christmas and of course many more to come!

househunter1315

That's an awful shame. Can you not sue for the return of your money?

John83

Hi guys,

First time buyer here and went sale agreed just over two weeks ago. I was aware fairly early that the bank was involved in the sale. Contracts and title documentation have arrived with my solicitor. There is a contract condition stating that consent has not been given by the vendors bank as yet. The vendor has stated that should consent not arrive before the closing date that they want another 2 months to get it. Otherwise there is no deal.

I'm not sure where I should go from here. My solicitor is looking for part payment now and suggesting we go ahead and do everything on our end so that we are ready. He also said that this condition is quite common these days and I shouldn't be overly concerned by it. But there is always the risk that the bank will not give consent.

I'm very happy with the house and the price. With a single mortgage, it took quite a while to find something as good as this. But I'm worried about taking a gamble that the bank won't give consent and all I'll end up with is solicitor fees.

Any advice would be appreciated!

Marcin Z

John83 wrote: »

Hi guys,

First time buyer here and went sale agreed just over two weeks ago. I was aware fairly early that the bank was involved in the sale. Contracts and title documentation have arrived with my solicitor. There is a contract condition stating that consent has not been given by the vendors bank as yet. The vendor has stated that should consent not arrive before the closing date that they want another 2 months to get it. Otherwise there is no deal.

I'm not sure where I should go from here. My solicitor is looking for part payment now and suggesting we go ahead and do everything on our end so that we are ready. He also said that this condition is quite common these days and I shouldn't be overly concerned by it. But there is always the risk that the bank will not give consent.

I'm very happy with the house and the price. With a single mortgage, it took quite a while to find something as good as this. But I'm worried about taking a gamble that the bank won't give consent and all I'll end up with is solicitor fees.

Any advice would be appreciated!

I've been waiting 3 weeks since my offer was accepted and deposit paid. In my case, my solicitor didn't get the contract yet. Ive been in touch with the EA and he said that contract is not ready yet as they waiting for the bank consent.
To be honest, I don't know what is worst. At least your solicitor, having whole documentation, can start the process of checking title deeds.
My solicitor cannot do nothing until all the papers come in..

on_my_oe

From personal experience, don't do a thing until the consent is granted and received - we incurred various costs including surveyors and valuation fees, and it was just a waste of money.

2013Lara

For any of the posters who were a long time waiting, can I ask if your Solicitor increased their conveyance fee (professional fee). If anyone would prefer to pm me that's fine! My original quote was 850 plus VAT, but they want to charge 1700 plus VAT. I personally think it's excessive, especially since we did a lot of the running around after the vendor ourselves. I had to bring them up twice on the fact that they were doing nothing and weeks and weeks would go by with no contact. Is it as excessive as I think it is or what? What were you all charged in addition to the original quote. I knew it'd be more expensive but never thought it'd be doubled!

ABajaninCork

Did you ask for a complete breakdown of the bill? Cost sounds about right as you took a long time to complete.

Ms2011

I was quoted €1800 by my solicitor as he has done sales like this before & knew the time & work involved.

missjuly

Our sale took around 7 months to complete and we were charged what we were originally quoted. To be honest I had my solicitors head wrecked at times ringing him all the time. So was half expecting an increased fee.
A friend of mine had a situation were the sale on a house she was buying fell through after 6 months his solicitor had done a good bit I think he charged him 500 euro. Its so crappy your being charged double after everything but onwards and upwards :-)

TheDriver

Its something I never thought of and an added cost. Another reason to run from NE properties.....

Aka Ishur

Well after signing contracts on the 3rd October, we finally received keys and title yesterday. long haul but glad to take down the 'for sale' sign