Vendor trying to settle on shortfall - delaying fhb

Hi - newbie here and fhb to boot so please take it easy!!

My partner and I have purchased a house and settlement was due to be last Friday (27th March 2009) at 2pm. We were advised by the conveyancer on late Thursday afternoon that it was highly unlikely that the sale was going to go through as the vendor was trying to settle on shortfall and were having some difficulties with the bank. :mad:

I asked the conveyancer how often this happens and whether banks usually settle on shortfall and I was advised that a recent client of hers tried to settle with $5k shortfall and was knocked back by the bank. I guess I should also mention that the conveyancer works for both us and the vendor.

We've paid our deposit and given notice at our rental property that we are moving as of Monday 6th April. The conveyancer has advised that we may settle this Friday 3rd April but if not it will probably fall through.....

What happens if the vendor is short by only a few thousand dollars? Do banks generally settle on shortfall (I've been told it's only a few k he's short)? What happens to us and our money if it all falls through?

As a fhb I've put all my time and effort into this and I'd hate to see it all fall apart now.

Thanks for any assistance.
 
What happens if the vendor is short by only a few thousand dollars? Do banks generally settle on shortfall (I've been told it's only a few k he's short)?
It will probably be alright. Like the shampoo advert - It won't happen overnight but it will happen.

I guess I should also mention that the conveyancer works for both us and the vendor.
You should have NEVER got into that position....EVER..........unless you are in a small isolated country town and they are the ONLY one..........even then - DON'T


What happens to us and our money if it all falls through?
Your money is safe UNLESS you released the 10% deposit to the vendor and they spent it - then it could get messy.
 
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