Safe to bid?

Noviceatlife

Hi,

Hoping for advice from more experienced house hunters/buyers out there. Husband and I have approval in principle from KBC, but AIP letter states that we can't drawdown until my husband passes his probation on 6th August.

We've viewed a house in receivership being sold by a bank - we really like it as it's close to work, decent size etc - but last bids have to be in by this week. We can afford to offer over the highest bid so far. Estate agents says receivership sales can take a while, might be four to five months before buyer gets keys.

So! Question is - is it safe to bid considering my husband hasn't passed probation? We would be concerned that, if our bid is successful, we might be required to sign a contract of sale before out approval was "valid"... but don't want to miss out on the opportunity.

Any thoughts?

Skyrimaddict

Noviceatlife wrote: »

Hi,

Hoping for advice from more experienced house hunters/buyers out there. Husband and I have approval in principle from KBC, but AIP letter states that we can't drawdown until my husband passes his probation on 6th August.

We've viewed a house in receivership being sold by a bank - we really like it as it's close to work, decent size etc - but last bids have to be in by this week. We can afford to offer over the highest bid so far. Estate agents says receivership sales can take a while, might be four to five months before buyer gets keys.

So! Question is - is it safe to bid considering my husband hasn't passed probation? We would be concerned that, if our bid is successful, we might be required to sign a contract of sale before out approval was "valid"... but don't want to miss out on the opportunity.

Any thoughts?

Yes it is as anything can happen in this time. Bidding and draw down usually 2-3 months going well. Receiver could take 12-15 months

lfc200

Noviceatlife wrote: »

Hi,

Hoping for advice from more experienced house hunters/buyers out there. Husband and I have approval in principle from KBC, but AIP letter states that we can't drawdown until my husband passes his probation on 6th August.

We've viewed a house in receivership being sold by a bank - we really like it as it's close to work, decent size etc - but last bids have to be in by this week. We can afford to offer over the highest bid so far. Estate agents says receivership sales can take a while, might be four to five months before buyer gets keys.

So! Question is - is it safe to bid considering my husband hasn't passed probation? We would be concerned that, if our bid is successful, we might be required to sign a contract of sale before out approval was "valid"... but don't want to miss out on the opportunity.

Any thoughts?

I bought from a receiver last year, booking deposit paid during the first week of June, got keys the week before Christmas. A little over 3 months until the probation is passed you should be safe!

Carlos Orange

Not sure what possible downside there is to bidding apart from getting mentally attached to the property.
The real decision is when you need to stump up a non refundable deposit or sign contracts.

Any chance your husbands work place could sign off on his probation earlier? Might be a bit early to ask for that yet.

Sale agreed to keys took me 6 months but I have no idea what a typical time frame is.

ThisRegard

psinno wrote: »

Not sure what possible downside there is to bidding apart from getting mentally attached to the property.
The real decision is when you need to stump up a non refundable deposit or sign contracts.

Any chance your husbands work place could sign off on his probation earlier? Might be a bit early to ask for that yet.

As you say, you could be pushed to sign a contract and potentially forfeit any deposit made.

Carlos Orange

ThisRegard wrote: »

As you say, you could be pushed to sign a contract and potentially forfeit any deposit made.

Sure but that is down the road and a decision for then.
Personally I would prefer to go for it now instead of wondering what might have been. At least until the point where money is actually on the line.

Noviceatlife

Thanks all for advice, was talking to our solicitor who advised against it so looks like it won't be a goer - thought we'd have to sign a contract and pay a deposit before August and it would be too risky if husband didn't pass probation/was delayed etc.

Out of interest - Ifc200 how soon after your bid was successful did you have to pay the booking deposit?

Victor

Make sure you bid is subject to mortgage.

ThisRegard

psinno wrote: »

Sure but that is down the road and a decision for then.
Personally I would prefer to go for it now instead of wondering what might have been. At least until the point where money is actually on the line.

OPs solicitor advised against anyway, but depending on the sale, deposit and contract signing​ won't necessarily be far down the road.

lfc200

Noviceatlife wrote: »

Thanks all for advice, was talking to our solicitor who advised against it so looks like it won't be a goer - thought we'd have to sign a contract and pay a deposit before August and it would be too risky if husband didn't pass probation/was delayed etc.

Out of interest - Ifc200 how soon after your bid was successful did you have to pay the booking deposit?

Heard back within a few days that my offer was accepted. Had to pay booking deposit again within another few days.

Skyrimaddict

lfc200 wrote: »

Heard back within a few days that my offer was accepted. Had to pay booking deposit again within another few days.

I thought all deposits were refundable in house buying cases?

ThisRegard

Not once contracts are signed, contracts can say that any deposit is forfeited if you withdraw from the sale.

Skyrimaddict

ThisRegard wrote: »

Not once contracts are signed, contracts can say that any deposit is forfeited if you withdraw from the sale.

Ah yes, but that is once they are signed. In the case of receiver sales, I would imagine contracts would be a good deal away.