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http://forums.moneysavingexpert.com/showthread.php?t=3269574

Surely they don't let you get this far...

(But to be bankrupt dishcharged such a short time ago and to think you will get a mortgage no problems WHILST being pregnant...)

That's a horrible story Sarah, and I don't think they will like their new address, on Shit Street! :huh:

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I find it very annoying you can be discharged from being a bankrupt after a year, lets face it isn't a long time.. You could cram a few of those into your lifetime and live the life of Riley.

Can someone with an account answer her question of " is there anything I can do?" with a simple "no"

Edited by exiges

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Well, to begin with, is she telling the entire truth?

For instance, did she tell the mortgage adviser right from the start about the discharged bankruptcy?

If she did, and the Halifax first offered a mortgage and then said they don't lend to discharged bankrupts, at what point did the mortgage adviser tell Halifax about it?

Their only choice appears to be renting while they try to prove that the adviser messed up and try to get back the deposit, which they will surely lose, and any financial costs and/or penalties, through the courts if necessary.

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Is this story for real?

Someone made a mistake here. Was the offer of a mortgage contractually binding?

If so, then the bank really has to lend the money.

However, I doubt that it was binding, and it was probably subject to checks and conditions.

So how then did her solicitor let the purchase go through without the mortgage being contractually agreed?

Either the solicitors made a mistake, in which case I imagine they will be liable for any loss, or it was a deliberate ploy to use emotional blackmail to force the banks to lend to a bankrupt person, after all a homeless pregnant women in the newspapers isnt going to do bank bosses any favours, no matter what the rights or wrongs of the matter.

Come back moral hazard.

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http://forums.moneys...d.php?t=3269574

Hi all,

This is my first posting on a forum but I am desperate for help. We applied for a mortgage from the Halifax via our mortgage adviser and I advised that I had been previously bankrupt and discharged in February 2009. We had a mortgage offer and exchanged contracts 2 weeks ago. We were due to complete last Friday and the Halifax have now said that they do not approve mortgages to people who have been previously bankrupt. We have already paid £17500 for our deposit for the house which we are buying (repossession) and the contract says that we will lose the deposit plus incur interest charges if we don't complete. Can the Halifax do this???? I am 5 months pregnant and have people moving into my house shortly which means we will have no house, be £17500 pounds down and no where to live. Our solicitors are working on it and we keep being told by our mortgage advisor that "everyone is doing what they can" and we don't have an answer. Our deadline is TOMORROW before our money is lost - is there anything I can do?

Thanks

It couldn't happen to a better person.

Edited by _w_

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Well, to begin with, is she telling the entire truth?

For instance, did she tell the mortgage adviser right from the start about the discharged bankruptcy?

If she did, and the Halifax first offered a mortgage and then said they don't lend to discharged bankrupts, at what point did the mortgage adviser tell Halifax about it?

Their only choice appears to be renting while they try to prove that the adviser messed up and try to get back the deposit, which they will surely lose, and any financial costs and/or penalties, through the courts if necessary.

Halifax do lend to discharged bankrupts...and why shouldnt they?....it takes one to know one.

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I wonder whether the house in question is on HBOS's books? So they get £17,500+ for doing nowt other than pi$$ing someone off.

It does seem odd that they can exchange contracts without the mortgage also being an agreed contract.

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oops

The exchange process takes place over the phone under a prescribed formula

set down by the Law Society and the date and time of exchange are recorded by

both conveyancers and it is at that point that the contracts become legally

binding.

If one of the parties is then not ready, willing and able to complete on the agreed

completion date, the other party can service Notice to Complete on the defaulting

party. Interest on the outstanding balance of the contract price (usually 4%

above bank base rate) will start to run from the day completion should have

taken place.

The Notice to Complete usually gives a further 10 working days for the defaulting

party to complete. If a buyer fails to complete within the extra 10 working days

the seller can rescind the contract, keep the deposit and claim any further losses

which may have been sustained as a result of the buyer’s failure to complete. If

there is a prospect that a buyer has the money to complete but is unwilling to do

so the seller can sue for specific performance of the contract or rescind the

contract and sue for damages. Please be aware that if a seller fails to complete,

the buyer can also sue for specific performance and damages.

Finally, a word of comfort, it is extremely rare for transactions to fail

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oops

The exchange process takes place over the phone under a prescribed formula

set down by the Law Society and the date and time of exchange are recorded by

both conveyancers and it is at that point that the contracts become legally

binding.

If one of the parties is then not ready, willing and able to complete on the agreed

completion date, the other party can service Notice to Complete on the defaulting

party. Interest on the outstanding balance of the contract price (usually 4%

above bank base rate) will start to run from the day completion should have

taken place.

The Notice to Complete usually gives a further 10 working days for the defaulting

party to complete. If a buyer fails to complete within the extra 10 working days

the seller can rescind the contract, keep the deposit and claim any further losses

which may have been sustained as a result of the buyer’s failure to complete. If

there is a prospect that a buyer has the money to complete but is unwilling to do

so the seller can sue for specific performance of the contract or rescind the

contract and sue for damages. Please be aware that if a seller fails to complete,

the buyer can also sue for specific performance and damages.

Finally, a word of comfort, it is extremely rare for transactions to fail

Happened to a relative of mine. Exchanged contracts and therefore signed a 6 month rental agreement on the new place. On day of completion moved into rented house. Solicitor rang to inform them that the other party could not complete. Husband's business had gone down the toilet and he'd spent their money propping it up. So my relative was left with an unsold house and an unpaid mortgage, plus a new contract to pay rent on a new house. No point in going after the buyers through the courts because they simply didn't have the money.

Tricky business this house selling/buying lark. I for one never intend to get involved in a chain - the stress would be awful.

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I find it very annoying you can be discharged from being a bankrupt after a year, lets face it isn't a long time.. You could cram a few of those into your lifetime and live the life of Riley.

Can someone with an account answer her question of " is there anything I can do?" with a simple "no"

Bankruptcy laws in this country are a joke, surely they should take any and all assets to pay your debts and it should last longer than a year. Clearly they had equity in the house or other assets as they raised £17.5k, so some poor git is paying for thier excesses. Thank god that fate has caught up on them, no doubt thier post is half the story and they omitted to tell Halifax about the bacruptcy in the first place and thought they'd get away with it just like the bad old days.

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Bankruptcy laws in this country are a joke, surely they should take any and all assets to pay your debts and it should last longer than a year. Clearly they had equity in the house or other assets as they raised £17.5k, so some poor git is paying for thier excesses. Thank god that fate has caught up on them, no doubt thier post is half the story and they omitted to tell Halifax about the bacruptcy in the first place and thought they'd get away with it just like the bad old days.

Doesn't it effect future employment prospects? An enhanced CRB check for say a teaching role would never be passed?

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I wonder what the muppet who replied she would not lose her deposit was on.

Still, I don't see what the problem is. She will get housed at taxpayers expense if she does not get a mortgage and the deposit was pretty much her only money. If she does get the mortgage, the taxpayer will presumably pay the interest if she for whatever reason cannot, or if that is not enough then also bail out the bank. Oh wait.

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Tricky business this house selling/buying lark. I for one never intend to get involved in a chain - the stress would be awful.

Presumably, it was a lot cheaper to rent somewhere for 6 months than to buy 10% of the house? I am aware that some people are willing to exchange contracts without a deposit, but if you do then signing a fixed-period rental contract at the same time might not be a smart thing to do.

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I wonder what the muppet who replied she would not lose her deposit was on.

Still, I don't see what the problem is. She will get housed at taxpayers expense if she does not get a mortgage and the deposit was pretty much her only money. If she does get the mortgage, the taxpayer will presumably pay the interest if she for whatever reason cannot, or if that is not enough then also bail out the bank. Oh wait.

Losing the deposit will be a God Send for her, because with the that deposit she couldnt possibly hope to claim a free house. Now it will be hers for the taking.

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I wonder why she was previously bankrupt?

:)

I suspect bankrupcty needs to include a training course on how to read small print, how to find out about spending money sensibly etc.

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http://forums.moneysavingexpert.com/showthread.php?t=3269574

Surely they don't let you get this far...

(But to be bankrupt dishcharged such a short time ago and to think you will get a mortgage no problems WHILST being pregnant...)

She's obviously buying with her partner (she refers to 'their' deposit).

Unless her partner is also a discharged bankrupt, why not put the mortgage in his name ?

Unless of course, her earnings are needed to be able to raise the amount needed.

It's a right mess.

My wife and I were involved in a near failed completion over 20 years ago. Our ftbuyers failed to complete by £500 (which was the amount

of their lender's retention). Doesn't sound much in today's money, but it was 1990 in the North East.

We were all packed up in the removal van ready for the call to go but was told of the shortfall by our solicitor.

FTB'ers coudn't get hold of the money until the following week !

Anyway, we went ahead without the £500 - the only other choice was to try and complete the following week which would

have been a logistical nightmare for everyone in the chain.

We got paid within a week or so.

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I wonder why she was previously bankrupt?

I dunno, probably ran out of money or sumfin?

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I dunno, probably ran out of money or sumfin?

Har de har. I just *knew* somebody would say that as soon as I'd typed the question. Bit like peole die from lack of breath.

edit: "HAT!!!"

Edited by Lepista

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Presumably, it was a lot cheaper to rent somewhere for 6 months than to buy 10% of the house? I am aware that some people are willing to exchange contracts without a deposit, but if you do then signing a fixed-period rental contract at the same time might not be a smart thing to do.

The desire to rent was because a location change was involved, to an area about which they had little knowledge. The type of rental they needed - with land - was in short supply so there was a desire to secure that. I would do the same in that scenario. They signed the rental agreement because exchange of contracts is legally binding (though still flawed, hence the OP's post).

In fact i would always move from rented to owned then to rented again before buying the next place, avoiding chains along the way. Off topic, but that programme that Krusty does/did about property chains is a good watch - not too "house prices only ever rise", but pointing out the stress and psychology involved in property.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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