Help undervaluation

B

bigsam

Guest
Hi

just like to know if anyone in me predicament as us or have any info on what we can do....
After getting approval for loan loan last feb we went ahead and put deposit on hse...I know many off you will say should have known but these houses were selling way under market value at the time with young family we need a house we both have good jobs and easily cover the mortgage..we were told hse would take a year to build ......alas house built 6 months early so had to have deposit early then the bank decided to reduce loan to 92 percent putting us under more pressure......
now the valuation is 20 grand less and with new contract being drawn up the bank may only give us 85% the builder is not moving from his original price ......
what can we do we are way short ......please no you should have known .....we both can cover mortgage easy we couldnt really have seen this coming any ideas on what developer will do
 
If the builder dropped the price by 20k, would you be able to go ahead with the sale?
Get your solicitor to negotiate for you, i'm guessing 20k is only a small percentage of the price and it would not be worth while for the builder to take you to court if you are willing to go ahead with the 20k reduction.

You could also go to a different bank, they may value the house higher.
 
Senna said:
You could also go to a different bank, they may value the house higher.
Click to expand...

No no no. Why would you suggest that they pay more than market value for the house?

They should hold out against the builder for the 20K reduction. If they don't have the money and any other assets then the developer will not sue them.
 
If the bank agreed to lend you a certain amount of money, on the basis of which you signed contracts at a particular price, the bank should honour this. Neither you nor the bank had a crystal ball when you signed the contract but they arranged an independent valuation. You should get your solicitor to write to the bank, in the strongest possible terms pointing out that you have acted to your detriment based on their loan offer. I have done this successfully on behalf of clients. For others out there buying homes on building agreements it is important that you either get a fixed time for completion of the house with corresponds with the expiry date on the loan offer or you sign contract subject to the final valuation reflecting the price paid.
 
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