Has this happened to anyone else?

I am currently experiencing a slight "hiccup" in the settlement of my latest IP. The situation is that finance is due today and the bank has insisted on valuing all my properties. This is all well and good but they haven't actually gotten around to sending the valuer to the property being purchased yet. The real estate and bank are waiting for the valuer to contact them re an appointment but no one even knows who the valuer is.

I have requested an extension on finance thru my solicitor but as yet she has not heard anything from the vendor's solicitor. I am getting a bit jittery considering the last valuation may not be done by end of day.

Has this happened to anyone else and if so how did you handle it?

Nat:confused:
 
Ask them for an 'approval subject to valuation'. This means that YOU are approved for the loan, as long as your properties val up.

This makes the vendor's a lot less nervous about extending the finance clause, rather than just asking for an extension because finance isn't granted.

I hope that makes sense... (been a VERY long day...)

asy :D
 
Thanks Asy,

I did stress to my solicitor that finance has been conditionally approved subject to valuation. We are assuming that no response means the request has been granted.

Next time I will ask for a 3 week finance clause if I need to get multi-valuations done!

Nat
:)
 
I've had deals subject to valuation within 14 days. The valuer got the job done on day 14 and as a result of all the stress I will never again write a finance or valuation clause with less than 21 days.
 
All your properties ?

Shhesh, sounds like they may be cross collateralised.

The idea of approval to val only sounds good

I do hope you are in a metro area for all your props, took us 15 days to get one done in Rocky recently :O(

Ta

rolf
 
Yes - they are cross collaterollised. My bank won't do it any other way and I don't have enough equity to withdraw and go to another lender (yet).

Next time I will be using another lender and the equity from the sale of my PPOR.

Nat:)
 
Hiya Nat,

Don't assume that just because you haven't heard it has been granted...

Ring your solicitor and make them check, or if they won't, ring the agent and get them to ring the vendor's solicitor and check...

Let us know how it goes.

asy :D
 
Hi Nat. Keep on your solicitors back and even get on to the bank doing the valuation (I know, you shouldn't have to). Last year, I was in similar situation where I was purchasing a new I/P and a bit of refinancing. To cut a long story short, I had to discharge part of a loan with one lender so they ordered vals over 4 properties. 3 of them got done (late) and they claimed the valuer could not locate the other one. HELLO, McFLY, it's only in a high rise complex. It dragged on for a while and ended up costing me default interest. When it eventually settled I hit the bank up for the default interest and they paid half the amount. As I said, you should not have to get involved but if sit back and wait, nothing will get done.
All the best
Marty
 
I have had the same situatution four times in a row and lost 2 of them, I know do everything possible to ensure it wont happen (hopefully) again.

As asy has said never assume, always check with solicitor and bank even at 4.59pm. I have found that even if a solicitor sends a fax the same day as finance is needed the vendor will take it (3 occasions). Why? because the vendor wants to sell and for whatever reason they dont want the contract to fall over because they willl have to go through the same proccess of; listing, finding a buyer, getting a contract, negotiating and awaiting approvals etc etc

I know have the philosophy of 'What hppens if you do nothing?'

wayneh
 
I think that just assuming everything is ok is a very dangerous position to take.

The "subject to finance clause" is there for your protection. If you dont have confirmation of an extention beyond the previously agreed period then you face the risk of the contract going "unconditional".

Your solicitor should make it clear in the letter to the vendor that the contract is ceased unless an extention for finance is given. You have to be prepared to walk away.

9 times out of 10 the vendor will extend as it in not worth going through all the hassles of selling again.

p.s Is it just me or are banks just painfully slow at the moment in approving finance? My solicitor tells me that most deals are requiring extentions on finance at the moment. You'd think that 14 days is plenty of time wouldn't you?
 
Nat Iam experiencing same problem tonight.Will follow Asy advise to youThanks Asy.I actually typed a detailed version of my problem lossed it all somehow I am too slow and tired to do it again.Layer181
 
Thanks for all the replys.

Don't get me wrong - I have been doing my fair share of the chasing and running around - I have even phoned my property manager for one property, asked her for the valuer's name/number and hounded the valuer myself. I have managed to find out from the selling agent that he made an appointment with the valuer for the property being purchased this afternoon - not bad since the contract went unconditional YESTERDAY!!!!! grrrrrrrrr.

I am not too happy with my solicitor even though she has been trying to get hold of the vendor's solicitor I would have thought she would be trying to speak to the selling agent as well. I will be making a few phone calls in the next few minutes I think.....

Nat:mad:
 
The problem is that most solicitors do not share there clients sense of urgency in these matters.

I suspect that it is due to the fact that most vendors dont follow through with any action against the purchaser (I say mostly, not always). Therefore, even if you get knocked back on finance after the approval date the vendor usually still doesn't take action because the whole process is very difficult and time consuming.
 
Nat,

Get on the phone and stay on it. In my current refiancing, I have hounded valuers, wholesalers (the people the banks get the money from), discharge depts of banks and everybody's solicotors.

Once you get hold of them, and be professional, its not that hard to get them to move.

The only people I was supposed to speak to in that list where my own solicotors. But if I hadn't, nothing would get done.

Jas
 
Ok so far this morning I have spoken to real estate agent, mortgage broker/finance manager, my solicitor (twice) and the vendor's solicitor. My solicitor has informed me (when phoning the second time) that the vendor's solicitor finally responded to the request for extension this morning - the day after the contract went unconditional. I would love to know what sort of situation I would be in if they had refused. :eek:

anyway - have an extension until tomorrow and now only need to find out if the valuation was done yesterday or will be done this afternoon.

Will someone please remind me why I'm doing this!

Nat:)
 
Back
Top