To please ask for your urgent help with our house purchase - our vendor is about to have their house repossessed

[Saltysea2001]

Please help. We have just found out that our vendor has a court date in August for defaulting on their mortgage. We are mid purchase, but can’t exchange before their court date.
Logically, the court would be pleased that we would be able to exchange about two weeks after the court date. But things often don’t follow logic.

We really love this house. I want to do all of the things which the court will take as confirmation that we are serious buyers, but also limit our financial exposure.

Does anyone know what the court will take into account? Is the survey booked enough, booked and paid for, or already done? I’ve just moved it a week or so to give us time to think. Searches are done anyway. We have a mortgage offer. Our purchaser is ready to exchange too. What else? Can we write to the judge or the lender? And if so, how? Any other great advice.

No-one at our solicitor’s firm has seen the like before and Citizens’ Advice etc can’t help.

Arrhghhhhhhhh

Would your vendor move out willingly? Are you 100.0000% sure of that.

Are you able to contact the Vendor’s Mortgagors, OP? They might be able to save money on their court case if a buyer is waiting to complete...

Definitely try to contact the seller's mortgage provider. At the very least it puts you in prime position if they do repossess because they will want to sell it quickly themselves to recover their money.

They can put an order on to hold off the repossession until the sale goes through. I had to get one on mine. The mortgage company would prefer that as they won’t have the grief that comes with it and it’s cheaper for them.

They will send a mortgage co representative to the hearing on the day and your vendor has to go (not bury their head in the sand like my ex did) with any relating documents. It’s stressful but should be ok.

Thank you so much everybody. This is definitely reassuring.

If anyone has any ideas on what the mortgage company will consider sufficient commitment to the purchase to put a hold on, that would be really helpful information.

Usually any repossession order doesn't take immediate effect anyway. If your vendor turns up with proof of the sale, it's virtually certain that the hearing will be adjourned. In any event, as people have said, the mortgage company will probably hold off voluntarily if you contact them ASAP, as they'll be happy to save legal costs.

Frankly, I'm amazed that the solicitors can't work this out for themselves. I think contact will need to come from them to show that you are a serious buyer.

Mine was up for sale not agreed so I just showed the agents adverts and paperwork. It didn’t take a lot to be honest.
If your solicitor can get in touch with the mortgage company it may even stave off the hearing. There’s a special name for the order they put it on, it will come to me if I have a think.

When I divorced, we were threatened with repossession. The mortgage company dealt with the estate agent directly. We had to agree to that or or they would have started court proceedings. Speak with the estate agent - they should understand the process.

Typically your solicitor providing proof of a proceeding sale is enough, although not always.

How far away from being willing to exchange are you? I’d attempt to send proof that exchange can happen pretty immediately once they give permission, if you really want the house. You’ll probably find that they then pause proceedings for it to take place, with a time limit that exchange must happen within.

Have you moved the survey closer or further away?