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Failure to complete on house purchase - Scotland


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Hi, due to bad advice and my head being in wrong place, I committed to purchase a property then found out just a day or two after handing my notice in that my mortgage wasnt 100% approved (My payslips were kept on line and they were not happy with paper copies I got from my work even though they had had them for about 1 month). My issue is not the legal side of whether I am obliged as basically i have been told not to fight a solicitor...

 

What i want to know is I am scambling around trying to get a mortgage as people said they will sell to me if I get mortgage sorted before they accept an offer and at moment am getting charged interest of £42 per day, plus their costs, plus of course the difference between my offer and what they get if they sell before I get a mortgage comfirmed. When i put my offer in the market was good and I bid £157777 even though the house needed revamped inside. Its valued at £150,000 so there is a good chance that it will sell for less or take a while in current climate.

 

I have been told in standard letter from their solicitor to mine(For these circumstances), that they will go to local court to enforce payment of monies due once house sold. Does anyone know the ins and outs of this if I cannot get the mortgage sorted (I have to get a bigger deposit etc). I am a single mum of two toddlers, and in my current accommodation struggle month to month so use my savings to survive - hence why I was buying. If this takes a long time to sell, or sells for more than a couple of thousand less than what i was offering I wont have the funds to pay them. I also have an Egg loan of about £6000 outstanding (Payments up to date). My mother says that if I cannot buy then her incentive to stay with me and look after my kids so i can work goes out the window (Was giving her a share of house in return for childcare as well as free board at moment) so she is sorry but she would get her own place and return to full time work. I understand her viewpoint on this but wonder what courts can make me pay? If I used my savings and paid off my credit would I get into trouble or how do priorities work out. Its just if I stop working I cannot afford to pay it and as I am a contractor, PPI wouldnt cover me. Would they chase me for what could be the rest of my days to pay them all I am due, at a few the court decided I could afford? Would the court think I was trying it on by stopping working? My ex has offered that i could come out to America and he could get me a flat for me and girls (he is hoping to persuade me to try again with marriage) so would they still accept paying it up if i moved abroad? If I did get back with husband, owuld he become liable for this debt? Does this type of debt have a time limit? I hate to thing that due to my solicitor pushing me to commit even though she had spoken to my financial advisor on my behalf a few days prior and knew mortgage offer wasnt in stone (She told me financial advisor had said first date seller stated wasnt practical but date y would be fine), and me providing all docs to financial advisor tha the mortgage company had asked for 6-8 weeks prior when they received my application), but financial advisor telling me he had told my solicitor that mortgage offers are never guaranteed till they are in writing (Shame she negleced to tell me my financial advisor had said that when she persuaded me to verbally agree to commit to purchase), as well as me not knowing that verbal agreement is as good as writtwen in Scotland.

 

Anyway, anyone know ins and outs? I do feel sorry for the sellers but at moment have to think of my family. It looks like due to some bad advice I could be in debt for the rest of my life, and loose any savings I do have, as well as have to pay my solicitors fees for her work on this.

 

Thanks for any info.....

Nikkiandmidgets Vs BOS (3) - S.A.R sent 11/09/06

 

Nikkiandmidgets Vs Capital One (2) - S.A.R sent 11/09/06, Prelims sent 20/10/06, LBA's sent 16/11/06

 

Nikkiandmidgets Vs Citi credit card - S.A.R sent 11/09/06, Prelim sent 9/10/06, LBA sent 28/10/06

 

Nikkiandmidgets Vs Halifax - S.A.R sent 11/09/06

 

Nikkiandmidgets Vs Egg (4) - S.A.R. sent 20/10/06

 

Nikkiandmidget Vs Littlewoods (3) - S.A.R sent 20/10/06

 

Nikkiandmidgets Vs Blackhorse - Prelim sent 20/10/06 requesting £125 charges to be refunded. LBA sent 16/11/06.

 

Nikkiandmidgets Vs Welcome Finance (Macadam Finance) - S.A.R and C.C.A request sent 20/10/06

 

My Mum Vs Halifax - S.A.R sent 11/09/06

My Mum Vs Capital One - S.A.R sent 20/10/06

My Mum Vs Citi - S.A.R sent 20/10/06

My Mum Vs SLC - S.A.R and C.C.A sent 09/10/06

 

Husband Vs BOS (3) - S.A.R sent 20/10/06

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Unlike England & Wales in Scotland you should have paid a dep which is forfeit if you don't complete the sale

 

Had your offer been subject to mortgage & the vendor agreed, then even in Scotland you could have withdrawn & got your dep back

 

What we need to know is why you thought your offer of a mortgage was firm.......did your solicitor say so........or is the lender trying to use any excuse to withdraw their offer...........if so & you made on an offer based on a firm mortgage offer you may have a case against the lender...or even your solicitor for not making sure the offer was firm before submitting it without conditions

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you dont pay a deposit in scotland, except for a new build?

 

Anyway, long story but I put an offer in last year, then due to husband withholding maintenance payments i backed out before signing anything. At that point solicitor was okay with me backing out. Anyway they send me a letter before xmas via my solcitor asking if I was going to offer any compensation to seller for their costs. i spoke to my solicitor and they said I wasnt obliged to and i told her I had had a talk with husband and he was reinstating payments so if i had known that I would have gone ahead with purchase. She then contacted sellers and reinstated my offer. I contacted my financial advisor and he said he would have to resubmit due to my last offer having lapsed - had got it about 6 months before but it had now expired. He then started the ball rolling again. They said they wanted proof of id, and copy of utility bill. Sent id and utility bill mid December. they then asked in January for my payslips. Sent all bar two to my financial advisor as I couldnt find them. Then requested them from my work, asked my finanical advisor if i was okay to look around for other work, he said I should be okay as they had gotten all the info they would need. Mortgage coy then asked again for missing payslips. i got them for them. They had them for over a week. My colicitor contacted me at work and asked when i thought we could commit to purchase and that seller was looking for date of 7th Feb. I advised i didnt have mortgage in writing yet but she could check with my financial advisor as I was busy doing a handover at work as my colleague was leaving. She phoned me back and said my financial advisor said 22nd should be okay and would i confirm this date would be okay to commit to. I told her that I had given financial advisor all docs the mortgage coy had told him they wanted and that i was under impression that we should get it in writing any day now as they had had my docs for a while, and I had no further requests from them. She said if I was sure I would get the funds as she had given her word i wouldnt back out again and if i delayed i could loose the property and i said I hadnt spoken to advisor but as she had spoken to him and he had said 22nd that everything must be all okay. So she did mention at this point that it would cost me a lot if it fell through but she knew my circumstances but didnt offer to delay them any more. I think this was because she had given her word i would complete. When i spoke to my financial advisor a few days later when the company then decided they wanted certified payslips etc from my employer I told him my solicitor had said I was committed but he said if i hadnt signed anything then dont worry as I couldnt be tied in if I hadnt signed anything. I dont drive and my solictor is closer to my home than work (I live 40 miles away from work as stay rural) yet when i sold my property and for other docs she specifically said things couldnt go ahead unless i came in and signed docs yet this time i didnt need to?

 

Got to go cos at work but will reply later if any queries\questions!

Nikkiandmidgets Vs BOS (3) - S.A.R sent 11/09/06

 

Nikkiandmidgets Vs Capital One (2) - S.A.R sent 11/09/06, Prelims sent 20/10/06, LBA's sent 16/11/06

 

Nikkiandmidgets Vs Citi credit card - S.A.R sent 11/09/06, Prelim sent 9/10/06, LBA sent 28/10/06

 

Nikkiandmidgets Vs Halifax - S.A.R sent 11/09/06

 

Nikkiandmidgets Vs Egg (4) - S.A.R. sent 20/10/06

 

Nikkiandmidget Vs Littlewoods (3) - S.A.R sent 20/10/06

 

Nikkiandmidgets Vs Blackhorse - Prelim sent 20/10/06 requesting £125 charges to be refunded. LBA sent 16/11/06.

 

Nikkiandmidgets Vs Welcome Finance (Macadam Finance) - S.A.R and C.C.A request sent 20/10/06

 

My Mum Vs Halifax - S.A.R sent 11/09/06

My Mum Vs Capital One - S.A.R sent 20/10/06

My Mum Vs Citi - S.A.R sent 20/10/06

My Mum Vs SLC - S.A.R and C.C.A sent 09/10/06

 

Husband Vs BOS (3) - S.A.R sent 20/10/06

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I understand that in Scotland once you make an offer & it's accepted by the vendor, with or without conditions, then you are bound by that offer & if you pull out they can demand you pay their costs & this is why most vendors require a deposit before committing to a sale

 

From what you say it's not clear whether your solicitor warned you or not about going ahead without a firm mortgage offer. If you did then your advisers have no case to answer

 

However if you can prove that they misled you into thinking everything was OK then they are guilty of professional negligence

 

I also suspect that as your solicitor admitted, to you, giving an 'undertaking' to another solicitor that this might be the reason they pushed you into making the offer.

 

Giving a firm undertaking to another solicitor then reneging is a very serious offence & that solicitor can be reported to their regulatory body who could & often do strike them off.

 

They take a very, very dim view of such behaviour as this goes to the heart of the profession as it seen as destroying the trust between members.

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Yes she did warn me of the risk if the mortgage offer didnt come through but when i said that she had spoken to advisor and he had told her 22nd so i guessed it must be okay, and also that mortgage company had been given all required docs almost 2 weeks ago and I had heard of no issued that I guessed it must be all right. She didnt tell me my financial advisor when speaking to her had advised her i didnt have a final offer and that although he was confident it would go through, that he advised her with thse things you never really knew till the offer was in writing. She usually plays 100% by the books and in past when i was with my husband and we were making offers on other properties she would never let us get pushed into anything and acted in our best interests. On this I feel she didnt but i have been told not to try to fight a solicitor as you rarely win.

 

Forgetting the who's in the wrong angle here cos I dont think I stand a chance of managing to back out of this, can anyone assist with my query on what happens once the sale goes through to another party. The longer this all drags on (I have chased Abbey up since 24th for my old mortgage statement as new financial advisor is basing my application on my past history as my contract duration is too short), the more money i will have to pay ontop of the purchase price in fees so its getting to stage that i dont know if I can afford to go ahead with this due to interest and their fees I am liable for. I need to know what this means for me. At moment I take home less money than I need to live on, what with rent and utilities and transportation, my mum is doing unpaid childcare and I am stressed and only see my kids for an hour at night and at weekends. Public transport wouldnt get me into work on time and if i had to use it would cost me hundreds a month whereas my lift is only £120, but if he stops work or goes on holiday, I have to take a mix of time off and stay occassional days with my sister who stays within 10 miles of where I work and as a contractor I dont get paid for time off. If I am in debt for the forseeable future i do not see the point of remaining in work and putting everyone else out when there is no end benefit to my family.

Nikkiandmidgets Vs BOS (3) - S.A.R sent 11/09/06

 

Nikkiandmidgets Vs Capital One (2) - S.A.R sent 11/09/06, Prelims sent 20/10/06, LBA's sent 16/11/06

 

Nikkiandmidgets Vs Citi credit card - S.A.R sent 11/09/06, Prelim sent 9/10/06, LBA sent 28/10/06

 

Nikkiandmidgets Vs Halifax - S.A.R sent 11/09/06

 

Nikkiandmidgets Vs Egg (4) - S.A.R. sent 20/10/06

 

Nikkiandmidget Vs Littlewoods (3) - S.A.R sent 20/10/06

 

Nikkiandmidgets Vs Blackhorse - Prelim sent 20/10/06 requesting £125 charges to be refunded. LBA sent 16/11/06.

 

Nikkiandmidgets Vs Welcome Finance (Macadam Finance) - S.A.R and C.C.A request sent 20/10/06

 

My Mum Vs Halifax - S.A.R sent 11/09/06

My Mum Vs Capital One - S.A.R sent 20/10/06

My Mum Vs Citi - S.A.R sent 20/10/06

My Mum Vs SLC - S.A.R and C.C.A sent 09/10/06

 

Husband Vs BOS (3) - S.A.R sent 20/10/06

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If she told you that if you put an offer in without a mortgage firmly in place was a risk then she appears to have fulfilled her duty to you irrespective of what your finance adviser did or didn't say to her or her to you

 

The other party once the house is sold will be able to claim from you any costs they incurred marketing it previously. Also if they can prove a reduction in value because of your delay they can also claim that loss. However they would have to prove they rejected other buyers offering the same price before that claim would have an chance of success

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I have been told they can recoup all interest on the £157,777 from the date I was supposed to settle, right through to when they eventually get a successful sale, plus their costs for re-advertising, plus the difference in price between my offer and what they eventually get. The market has dropped by us so unless I can buy, i am 100% sure i will not have enough money to pay them all these costs that i will be liable for when it eventually does re-sell. What happens then as i wont have any assets and very likely wont be working as my mum will want to get her own place and work full time so she can buy her own property...

Nikkiandmidgets Vs BOS (3) - S.A.R sent 11/09/06

 

Nikkiandmidgets Vs Capital One (2) - S.A.R sent 11/09/06, Prelims sent 20/10/06, LBA's sent 16/11/06

 

Nikkiandmidgets Vs Citi credit card - S.A.R sent 11/09/06, Prelim sent 9/10/06, LBA sent 28/10/06

 

Nikkiandmidgets Vs Halifax - S.A.R sent 11/09/06

 

Nikkiandmidgets Vs Egg (4) - S.A.R. sent 20/10/06

 

Nikkiandmidget Vs Littlewoods (3) - S.A.R sent 20/10/06

 

Nikkiandmidgets Vs Blackhorse - Prelim sent 20/10/06 requesting £125 charges to be refunded. LBA sent 16/11/06.

 

Nikkiandmidgets Vs Welcome Finance (Macadam Finance) - S.A.R and C.C.A request sent 20/10/06

 

My Mum Vs Halifax - S.A.R sent 11/09/06

My Mum Vs Capital One - S.A.R sent 20/10/06

My Mum Vs Citi - S.A.R sent 20/10/06

My Mum Vs SLC - S.A.R and C.C.A sent 09/10/06

 

Husband Vs BOS (3) - S.A.R sent 20/10/06

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They can if they took out a bridging loan in order to complete the purchase on their new property. In fact they can claim any costs they would otherwise have not inccured had the sale gone through

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