Completion Notice

D

denisec

Guest
Hi All,

In a bit of bother regarding the purchasing of our first house.
Went sale agreed on a small cottage with full planning for a dormer bungalow.....delighted. Paid booking deposit of €5k, was approved in principal for mortgage through broker, which was organised by my partners accountant. This was dec 06. Had delays with mortgage then due to end of year accounts and paperwork etc, received contracts and on advice and guarantee from the broker and accountant of our 90% mortgage we signed them with our solicitor. Full deposit was accepted for €5k subject to closing on 9/03.
We waited on letter of offer and valuation was done for mortgage crowd, who deemed the cottage not liveable!!! Therefore it is now valued as a site and mortgage company sent out letter of offer for 80% of purchase price as a result and 100% of the build money. This means the rest of the money we had to come up with €20k has now doubled to €40k the week before we were due to close. .....Help!
Thing is the money for the building of the house is more than we need but we cannot come up with this other €20k this side of the sale.
So we have informed everyone and have now been served a 28 day completion notice.
Any advice or suggestions in relation to this?
 
First of all are you obliged to complete the sale? Were your contracts made subject to loan at your request? If so then you have the choice to walk away.

Secondly even if your contracts are unconditional do you want to proceed? If you don't then try to negotiate with the vendor- some vendors will be reasonable.

Thirdly if you want to proceed then you have two choices- either try for a different loan with a different valuer who might have a different opinion or take out a personal loan for the difference. It's really that simple. As regards the personal loan, shop around if you have a choice. Try your own bank- the one you are getting the loan from. Try the credit union- explain the circumstances. Try them all. Or borrow from family if you really must ( usually a bad move but if needs must.)
 
Thanks for your reply.
I have been trying to get to talk to my solicitor since Friday in relation to this, as I do not know the extent of the damage but yet to no avail!!
Hence my panic.
The vendors are not reasonable from what I can tell to date and at this stage and being as stressed as I am, I am beginning to think this really is not meant to be.
When we signed the contracts we had been promised letter of offer for 90% was on the way and we informed our solicitor of this and we assured him that there was no problem..so i do not even know what was in the contract.
I am beginning to worry as my solicitor the auctioneer and our accountant are all friendly and I feel they are more worried about themselves and their reputations! Well the solicitor and the auctioneer anyway.
Unfortunately we really are not in a position to get the money from anywhere that we need. If we could we would be okay.
 
Denisec if you informed your solicitor that you were sure loan offers were on the way then it is quite likely that the contracts are unconditional. However you should make an appointment with the solicitor and talk through your options now. What is the stage of your committment now. Can you walk away? If you have unconditional contracts you may lose your deposit if you have to walk away now so you should find out for certain.

I don't know what you mean by saying that the solicitor/accountant and auctioneer are all friendly. They might be but business is business and your solicitor should put your best interests first.
 
Okay thanks.
I understand that it is more than likely that I will lose the deposit money but it mentions interest @ 10% p.a. and expenses and losses on the resale of the premises and deficiency in price and any other losses and expenses??!!
Evertime I ring my solicitor he is busy. I presume he got a copy of this notice also.
This really is a great site.
Thanks for your help.
 
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