Solicitor has not paid off the old mortgage yet

Discussion in 'The Switchers' Forum' started by That'sLegal!?, Aug 13, 2017 at 8:53 AM.

  1. That'sLegal!?

    That'sLegal!? New Member

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    Hi Galego,

    Doing a switch myself now. 3 months later and I think it might be finally happening. I feel I've been the victim of some serious solicitor incompetence though.

    Do you know how long it took your solicitor to pay off the old mortgage once the new mortgage money was transferred to him/her?
    Mine still hasn't done it and it's been a week. Which I assume is way too long. They say they're waiting on a figure from the old bank.

    So I'm getting charged interest on two nice hefty mortgages. I want to get an idea of what's typical.

    Thanks
     
  2. bdecuc

    bdecuc Registered User

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    Hi That'sLegal!?

    Just from my own experience, my switch completed in the last couple of weeks. There was no delay between drawing down the new mortgage and paying off the old. As far as I could tell my solicitor had the appropriate figure from the old bank already confirmed and it seemed like this was paid within a couple of days once the new mortgage came through. In fact it looked like the solicitor had requested the amount a few weeks ago such that by the time he actually paid it there had been another regular mortgage payment made in the meantime so there was an overpayment. The old bank refunded that to me very quickly though.
     
  3. Brendan Burgess

    Brendan Burgess Founder

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    Even if there is a delay in the old bank telling your solicitor the balance, they should still pay the full amount immediately off the mortgage. That would stop the interest accruing and any delay by the bank would not be costing you double interest.

    Brendan
     
  4. twofor1

    twofor1 Frequent Poster

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    Few years ago my solicitor not having the exact amount owed, overpaid the bank saying any overpayment will be refunded by the bank to my current account, that's exactly what happened.
     
  5. Cervelo

    Cervelo Frequent Poster

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    There should be no delay in getting a figure from a bank, I've paid off two mortgages in the last two years and the bank took no longer then an hour to give me the redemption figure.
     
  6. mf1

    mf1 Frequent Poster

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    "Mine still hasn't done it and it's been a week. Which I assume is way too long. They say they're waiting on a figure from the old bank."

    Is it conceivable that the old bank have not furnished redemption figures such as would enable the solicitor to be certain that there are no other debts covered by the mortgage that aren't on the mortgage statement?

    It is possible. A certain Dr. G Kean was sued by EBS precisely because of this issue.

    http://www.irishexaminer.com/breaki...to-vigorously-appeal-court-ruling-788889.html

    mf
     
  7. Brendan Burgess

    Brendan Burgess Founder

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    Hi mf1

    I don't understand what happened in the Kean case.

    Is it something like the following:

    Say the OP has a mortgage of c. €100,000 with Bank of Ireland

    They have switched to AIB.

    AIB has sent a cheque for €100,000 to the solicitor.

    BoI writes saying that the OP owes €150,000.

    The solicitor is stuck.

    Brendan
     
  8. mf1

    mf1 Frequent Poster

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    In a nutshell, yes.

    It has been a significant problem in the past and it is not unknown for a client to "stiff" their solicitor by lying about the amount due on an "all sums due" mortgage . Imagine that !

    This is the recommended wording we use in the authority letter :

    "The mortgage account number(s) I have listed above is the only one(s) known to me that is secured by the property being sold/re-mortgaged. My solicitor will be applying for a vacated mortgage after the sale/re-mortgage is completed. If there is any other account which you claim is secured by the mortgage on the above property, please give details of it to my solicitor when forwarding the title deeds on accountable trust receipt and confirm all sums secured when confirming redemption figures for release of the charge on the property."


    mf
     
  9. Brendan Burgess

    Brendan Burgess Founder

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    OK

    So the solicitor should not redeem the mortgage until they are given an answer from the bank to that question.

    Would a search on my property not show up all loans secured on it?

    Would it be normal to get the old balance before drawing down the money from the new lender?

    I do remember a solicitor telling me that he just could not get a final figure from the Irish Nationwide when trying to redeem mortgages. I had wondered what the problem was, but now I guess that it must have been trying to figure out if there was any other money secured on the property.

    Brendan
     
  10. mf1

    mf1 Frequent Poster

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    "Would a search on my property not show up all loans secured on it?"

    No. Its car loans, overdraft facilities etc.,etc and they are not secured on the actual mortgage deed but they are debts due on an all sums due mortgage.

    "Would it be normal to get the old balance before drawing down the money from the new lender? "

    Ideally, yes. Doesn't always happen.

    mf
     
  11. cremeegg

    cremeegg Frequent Poster

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    Could you maybe explain exactly how this can be done, I'm just curious. :cool:
     
  12. mf1

    mf1 Frequent Poster

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    I'm afraid, if I did that, I'd have to kill you!

    mf
     
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