Solicitor cashed mortgage

Is it ok for a Solicitor to cash your mortgage even though sale of house hasnt fone through? Leaving client to pay mortgage and rent!!

No...simple as that

imagine you were going to be on a fix rate, then you'd be paying fixed repayment amt every month even though you hadn't purchased a property because the bank starts charging you when the cheque is cashed and because there is no security, the lender won't be best pleased either.....if the sale didn't go through you would be paying for a mortgage and no house and you would have to pay a fee to redeem the mortgage before fix rate period is up and so that will cost you as well....this is the soliciitors fault entirely

mol2004 said:

Is it ok for a Solicitor to cash your mortgage even though sale of house hasnt fone through? Leaving client to pay mortgage and rent!!

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Would it not be more helpful if you advised what the time frame was?

Ideally, a closing date is fixed and the loan funds are drawn down a day or so in advance of that date. However, increasingly, purchasers want a clause in the contract saying that the purchase is conditional on their loan funds actually coming through so, until that happens, the vendor cannot be sure that the sale will close and cannot organise alternative accommodation etc.,etc.

I am involved in one at the moment where the parties have agreed that the closing date will be 10-14 days after the loan funds are received by the purchasers solicitor. So, yes, the purchaser will be paying the mortgage and rent but they cannot have it every way.

mf

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mol2004 said:

Is it ok for a Solicitor to cash your mortgage even though sale of house hasnt fone through? Leaving client to pay mortgage and rent!!

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I suppose it depends on whether it was agreed with the client. It sometimes happens when fixed rates are increasing. The client can agree to cash the mortgage cheque and lock in the old fixed rate rather that wait for the sale to go through and be put on the higher new fixed rate.

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