Hi @Janiiiiiiice. This is probably not your field of expertise but I will ask anyway as I really want to help a friend. Sorry the story is longgg.
Hello all, please are there any bridging loan expects on here as I need expect insider advice on how they operate. I am posting this on behalf of a dear friend in great distress at the moment. Pls be kind with comments
•A single father friend of mine got a bridge loan on a house he lives in with his young kids ( bridge lenders aware that he lives in the property with his kids).
•Condition of loan was & is for him to sell his only residential property & pay off the loan. As that was his stated and accepted exit from the loan.
• lenders said if they sense that he's not serious about selling, they have right to repossess the house immediately
• lenders also said they have right to contact agents & reduce the price of property after a certain period if the house is not sold.
• lenders borrowed him money based on the survey report that house is worth £535,000
• house was on market for £565,000 ( a figure he came up with after consulting 4 different agents)
• not much interest generated as such for months ( some viewings from the 3 agents he using to market property)
• house was not sold during a certain period. So, my friend called the agents to reduce house price to £550,000 as he didn't want the agents to go do that.
• last week, he go an offer of £525k. He said no to as he's got a private interest with an offer of £550k (the asking price)
• they came back few days later with an increased offer of £534k & he said no because of the private offer of £550k
• his agents are saying an offer of £534k is a good offer & that he should accept it b4 its 2 late ie property mkt is not doing well. & asked if he's sure d private offer of £550k will actually materialise & he's confident.
• I'm worried for him because if the offer of £550k does not go through, won't the lender see & think he's not actually trying to sell and repossess the house because he didn't accept offer of £534k?
•i am wondering if the lenders would have contacted the agents since the day he took the bridging loan from them?
• does the agent have to tell him that the lenders has contacted them regarding his house which is on the market or they are not allowed to tell him by law or regulations etc?
• since the lenders property survey value & money loaned was based on a value of £535k and he's got an offer of £534k now and he's declining for a private offer of £550k which hasn't being made official or any process started ( as the private offer is coming from someone who is saying he will kick start the sale process Nxt week as he's away on holiday) won't the lenders think he not trying to sell?
• he wants to tell for but for £550k and does not want to settle for £534k + he is expecting an inheritance of a very large amount in January or February 2020 but his loan is due back to lenders in March 2020. He is also trying to slow things down a bit as his ex (mother of his kids whom he loves dearly) passed away recently so, he is not in the mood to really do much and he's very depressed and just want slow down and slow things down a bit.
• if he could get the inheritance money now, ie today, he will pay off lenders and take house off market to breathe and grive, for his ex but unfortunately, he can't get the money till later.
• say the £550k offer does not go through & he looses the lady who offered £534k by end of February, and property hasn't been sold at what point will the lenders start the process of repossession of his property?
• would it be possible for the lenders to accept part repayment of the loan amount owed to them now on the condition that they let him take the house off the market and then pay up the balance towards the end of the loan term?
NOTE.- he does not really want to bank on the inheritance as he is saying he is sure his brother would most likely fight him for it through the courts 🙄🤦🏽♀️.
•PLEASE PLEASE kind comments & advice pls as he desperate for answers and advice. Help pls.