Jump to content
House Price Crash Forum
Sign in to follow this  
anonguest

House Purchase Offers Being Withdrawn

Recommended Posts

Partly in response to a a reply ending comment on a recent thread......

I was told yesterday and monday, separately, by close family and friend who are in the market to buy in London and elsewhere that a large number of recently viewed and supposedly sold properties (listed as Sold Subject to Contract) have now come back on to the market as available again.

In many cases, these properties which tey had their eyes keenly on, they are being contacted by the estate agents letitng them know of the re-availability. In all cases it was because the prospective buyers failed to get the necessary finance/mortgage.

Yes, this happens all the time - but the large percentage leads me to recall the recent comment made by others here that this would happen shortly. I guess a lot of now frustrated sellers will now be pushed yet another step closer to reluctantly lowering their prices again now - leading up to late summer/early autumn.

Another, entirely separate, anecdoatl that has come my way via a friend of a friend, is that falling markets can ooccassionally have a silver lining? I was told of a couple selling, agreeing a price, exchanging contracts and the buyers deciding to walk away after exchange of contracts - so losing £17,000 deposit. Perhaps they felt the market has a lot further to fall??

Whatever the reason, the lost deposit has apparently now paid off the residual of the sellers outstanding mortgage - and are now debating again whether they need to sell now at all!

Share this post


Link to post
Share on other sites
Partly in response to a a reply ending comment on a recent thread......

I was told yesterday and monday, separately, by close family and friend who are in the market to buy in London and elsewhere that a large number of recently viewed and supposedly sold properties (listed as Sold Subject to Contract) have now come back on to the market as available again.

In many cases, these properties which tey had their eyes keenly on, they are being contacted by the estate agents letitng them know of the re-availability. In all cases it was because the prospective buyers failed to get the necessary finance/mortgage.

Yes, this happens all the time - but the large percentage leads me to recall the recent comment made by others here that this would happen shortly. I guess a lot of now frustrated sellers will now be pushed yet another step closer to reluctantly lowering their prices again now - leading up to late summer/early autumn.

Another, entirely separate, anecdoatl that has come my way via a friend of a friend, is that falling markets can ooccassionally have a silver lining? I was told of a couple selling, agreeing a price, exchanging contracts and the buyers deciding to walk away after exchange of contracts - so losing £17,000 deposit. Perhaps they felt the market has a lot further to fall??

Whatever the reason, the lost deposit has apparently now paid off the residual of the sellers outstanding mortgage - and are now debating again whether they need to sell now at all!

If you look a the thread started by DannyBlue in London he has seen three offers fall through in 3 months :blink:

However this may be the one you are reffering to? ;)

Edited by Neverland

Share this post


Link to post
Share on other sites
If you look a the thread started by DannyBlue in London he has seen three offers fall through in 3 months :blink:

However this may be the one you are reffering to? ;)

Perhaps, I cant remember. However, the number of offers withdrawn I was personally told about the other day was vastly higher than 3 in 3 months!

Edited by anonguest

Share this post


Link to post
Share on other sites

Are these FTB properties?

Could be the public abandonment of OpenMarket HomeBuy...

Share this post


Link to post
Share on other sites

Probably a combination of banks refusing mortgages and buyers getting cold feet. I'd imagine the latter would increase with the unemployment increase. It's all well and and good talking about how pwoperdee always goes up, but when you're about to plough 200K into an asset which looks like a pretty bad bet the reality might just be slightly different. ;)

Share this post


Link to post
Share on other sites
Probably a combination of banks refusing mortgages and buyers getting cold feet. I'd imagine the latter would increase with the unemployment increase. It's all well and and good talking about how pwoperdee always goes up, but when you're about to plough 200K into an asset which looks like a pretty bad bet the reality might just be slightly different. ;)

Another down leg after the spring bouce then? :unsure:

Sounds sensible... ;)

Share this post


Link to post
Share on other sites

We got some here ... it's pretty encouraging to see so many

:)

If people can't get mortgages then the EA might have to be nicer to the cash buyers too

Edited by SarahBell

Share this post


Link to post
Share on other sites

It is a game the lenders are playing - offer a mortage, stick it in their monthly approval figures so they can claim mortage lending is on the up and then at the last minute withdraw the mortgage!

In fact, thousands of people being offered mortgages and then having them withdrawn can be a repeating part of each month's mortgage figures!

Share this post


Link to post
Share on other sites

The market may still be riddled with flippers still, chucking in offers, waiting as along as possible and pulling out at the last minute if no gain is to be made. Considering the casino that has been made of housing I wouldn't be surprised at some degree of this happening still.

+ Homebuy gone + spooked cash buyers run out and you have a certain loss of hot air from the whole chain.

Share this post


Link to post
Share on other sites
It is a game the lenders are playing - offer a mortage, stick it in their monthly approval figures so they can claim mortage lending is on the up and then at the last minute withdraw the mortgage!

In fact, thousands of people being offered mortgages and then having them withdrawn can be a repeating part of each month's mortgage figures!

Can't be.

If buyers are exchanging on the back of a mortgage offer that then gets withdrawn, then one of two things will happen:

1. Lenders get sued out of existance.

2. If they can't be, people will stop exchanging until they have the money. Obvious problems there.

PS. I guess you were having a giggle?

Share this post


Link to post
Share on other sites
It is a game the lenders are playing - offer a mortage, stick it in their monthly approval figures so they can claim mortage lending is on the up and then at the last minute withdraw the mortgage!

In fact, thousands of people being offered mortgages and then having them withdrawn can be a repeating part of each month's mortgage figures!

Not according to official figures if we can believe them, see link on my post here:

HPC Link

Share this post


Link to post
Share on other sites
Are these FTB properties?

Could be the public abandonment of OpenMarket HomeBuy...

Not exactly FTB class properties, although both separate couples are FTBs. They just happen to have saved more than the average lot and can afford to buy houses that are bigger than the average FTB type property.

Both couples have just about reached the 40-ish% deposit level for the price range they are looking at - so definitely not ordinary/usual FTBs then I guess.

Share this post


Link to post
Share on other sites
Not exactly FTB class properties, although both separate couples are FTBs. They just happen to have saved more than the average lot and can afford to buy houses that are bigger than the average FTB type property.

Both couples have just about reached the 40-ish% deposit level for the price range they are looking at - so definitely not ordinary/usual FTBs then I guess.

At the moment they probably are close to average FTBs ;)

Banks seem to be preferring 25%+ deposits? :blink:

Share this post


Link to post
Share on other sites
and then at the last minute withdraw the mortgage!

Thanks for the warning. If we move we will be looking for about a 25% mortage c. 75K - ie. desirable borrower.

Once offered I will demand that the lender places £7,500 in escrow which they forfeit if they withdraw.

Those of us in a position to do so should be thumping lenders in the 'nads at every opportunity.

Share this post


Link to post
Share on other sites
Thanks for the warning. If we move we will be looking for about a 25% mortage c. 75K - ie. desirable borrower.

Once offered I will demand that the lender places £7,500 in escrow which they forfeit if they withdraw.

Those of us in a position to do so should be thumping lenders in the 'nads at every opportunity.

Aren't you punching the offeror in the "nads"? :blink:

The lender won't be handing over any money until all the paperowrk is done :huh:

Fair enough though, asking for the deposit will quickly establish how real their "offer" is ;)

Share this post


Link to post
Share on other sites
It is a game the lenders are playing - offer a mortage, stick it in their monthly approval figures so they can claim mortage lending is on the up and then at the last minute withdraw the mortgage!

In fact, thousands of people being offered mortgages and then having them withdrawn can be a repeating part of each month's mortgage figures!

This isnt happening - the deals are falling through for 2 reasons:

1. The real value of the properties (by the lender's valuation) is far less than the sellers think their properties are worth (by about 40%)

2. The buyers are putting offers in before they have a mortgage agreed and when they come to arrange a mortgage they are discovering that their maximum available loan amounts are far less than the asking price of the property.

Share this post


Link to post
Share on other sites
Can't be.

If buyers are exchanging on the back of a mortgage offer that then gets withdrawn, then one of two things will happen:

1. Lenders get sued out of existance.

2. If they can't be, people will stop exchanging until they have the money. Obvious problems there.

PS. I guess you were having a giggle?

Who said anything about exchanging? Um, you - no one else.

You can go into the Nationwide or Halifax, get offered a mortage by then and go away and offer to buy a house. It goes through the solicitors and before contracts are exchanged the mortgage gets withdrawn. I know this is happening as an EA told me this very thing a few weeks back.

No one is sued as no contracts are exchanged. The only people who lose out are the buyer and seller who may have incurred solicitors' fees.

I assume you were giggling also :P

Share this post


Link to post
Share on other sites
This isnt happening - the deals are falling through for 2 reasons:

1. The real value of the properties (by the lender's valuation) is far less than the sellers think their properties are worth (by about 40%)

2. The buyers are putting offers in before they have a mortgage agreed and when they come to arrange a mortgage they are discovering that their maximum available loan amounts are far less than the asking price of the property.

That makes sense.

And means: that both sellers and buyers both have an over-optimistic view of the property values, and lenders are being more realistic.

Share this post


Link to post
Share on other sites
That makes sense.

And means: that both sellers and buyers both have an over-optimistic view of the property values, and lenders are being more realistic.

Absolutely - its the lenders property after all until you have paid in full

Share this post


Link to post
Share on other sites

Hmmm, a partner of McGrigors complaining about low valuations leaving house builders, "with wafer thin margins" in trouble. The same McGrigors who specialise in house building law.....?

http://www.mcgrigors.com/sectors/housebuil...ding/index.html

EDIT: Just to say that whilst the original anecdote is good news, of the 50 properties I have saved on rightmove, 6 have gone SSTC of which none have gone back on the market. Lots have gone "under offer" and then back to normal a few days later. Not sure whether this is agents trying to stir up interest or real offers and vendors refusing, probably a bit of both.

Edited by SpiceWorld!

Share this post


Link to post
Share on other sites
EDIT: Just to say that whilst the original anecdote is good news, of the 50 properties I have saved on rightmove, 6 have gone SSTC of which none have gone back on the market. Lots have gone "under offer" and then back to normal a few days later. Not sure whether this is agents trying to stir up interest or real offers and vendors refusing, probably a bit of both.

... and there is also the vendor pulling out because they think prices will rise again soon.

... and the vendor moving to another EA because they think its the EA that isnt pushing their properties.

Share this post


Link to post
Share on other sites
This isnt happening - the deals are falling through for 2 reasons:

1. The real value of the properties (by the lender's valuation) is far less than the sellers think their properties are worth (by about 40%)

2. The buyers are putting offers in before they have a mortgage agreed and when they come to arrange a mortgage they are discovering that their maximum available loan amounts are far less than the asking price of the property.

3. Lots of job losses = people pulling out !!!!

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   285 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.