Repossession help! Exchange of contracts

[Missy44]

We are first time buyers trying to buy a house. We have found a lovely three bed house but it's a repossession. We knew the risks and put in an offer. We didn't get it accepted until we went to the asking price of £185.

We got moving very quickly and thanks to a very quick solicitor were ready to exchange early next week (around 17 days).

Two weekends ago the house had a higher offer of £187, we've come back with an offer to beat that £187,500 and have always been the front runners.

However today, the same person has put in an offer of £191. We can't afford to go any higher but with some frantic phone calls to the mortgage company were ready to exchange and went to the solicitor and signed.

The estate agent has written to the asset management company and said that the other person put in random offers on this house and others and has a history of guzundering at the last second, that he views properties all the time and that he hasn't produced full proof of deposit but we don't know if it will be enough.

We are waiting for the other side to agree whether or not to go with us or with him. We could lose the house even though we've signed our side of the exchange documents. Has anyone else been in this position and how did it work out?

I would withdraw your offer and then offer the £185k again when the other person drops out.

I was going to say what scaryteacher said.

Call his bluff.

It's such a nerve wracking time. Plus, we've just found out that he has not provided proof of deposit.

When we put in our first offer, before the estate agent would put it forward, we had to provide our agreement in principle and our proof of deposit. We did that.

This other guy has put forward a verbal offer, has provided proof of deposit, but it's not enough, and the offer has still been put forward!

I can't help but feel this is extremely unfair!! Are there any laws or rules on this?

No laws at all i'm afraid. Part of the problem is that the mortgage company HAS to be able to prove to the people from whom the house was repossessed that they got the best possible price because they will have to repay any shortfall between actual sale price and what they borrowed. So if there is paper work showing a higher price was offered and they didn't follow it up, then the mortgage company would be liable to the original owners. The info from estate agent may help, but it is a bit of a rock and a hard place situation.
Good sense may well prevail but it will take time (will have to go up the mortgage co chain of command a bit because in their terms they are taking a risk). My guess would be that either they will come back to you next week to proceed or they will go with the other chap. And inevitably be back with you in a while. The withdrawing advice is good (but i'd give it a week or so and try to get agent to jolly them along and remind them about the proof of deposit

(sorry pressed wrong button) but i know needs some nerves. Good luck. You are in the right. Mortgage company not necessarily b*s just have slow communication sometimes.

Thanks for your help. Just had a phone call, looks like they are going to go with the other person! Absolutely gutting! We've already signed the exchange papers with our solicitor and they are still overlooking us!

We've put our notice in on our current rented place so it looks like we're going to be homeless! This is Gutting!!

We've spent nearly £1000 just to get to this point (surveys, solicitors, searches, mortgage fees)

Words can't describe how I feel about the person who decided to put in a higher offer knowing that we were this far down the line!!

I expect that the mortgage company will be back accepting your offer soon if history repeats.

Don't give up hope just yet. Ask your solicitor to hang on to the documents for a bit. We're on our third chain with our house sale, and its taken 6 months from the first offer, so far.

I am sorry to hear that. I agree dom't give up hope completely but I know that having given notice its very difficult. Would your landlord let you exten for a while?