What happens if loan check isn't issued by closing date?

S

sarkozy

Guest
Due to bank delays, it may now be that the closing date that's been agreed won't be met. This is due to delays with the bank, beyond our control.

We've signed and returned contracts, awaiting for same from the vendors.

Were the issue of the loan cheque delayed, what will this mean if we cannot meet the closing date? Is it a major problem?
 
This happens all the time. It is generally because over eager clients cannot believe that it takes X weeks for the bank to deal with, process and issue a loan cheque.

The solicitors will talk to each other and re-arrange a date.

mf
 
My concern is we have already experienced many delays, the vendors have been very patient, we returned contracts and paid a deposit (subject to a loan condition which takes account of the insane delays), and were the date to be renegotiated, the vendors would walk?

I'll say, we do not believe, and have been assured by the mortgage advisor, that this issue will not mean the mortgage will fall through. And we're making every effort to ensure it doesn't. We really want to close this as soon as possible.

Should I be concerned?
 
If you have already exchanged contracts then in 95% of the cases, if you pull out the vendor can keep your deposit. Given that it is usually 10% that covers the vendor for lots of things.
If the process was going on so long such that if you pulled out at the current price and new sale would give a price of < 10% then you could start getting worried as to when they may jump. Based on CSO figures it would want to be 6-8 months since the original closing date before it'd be an issue.

Hopefully that makes sense. Obviously there are many other reasons why the vendor could get peeved and want to pull out but that'd be the main one I think.
 
Actually, I'm not sure if that makes me more worried. Are you saying that, upon agreeing a closing date with the vendors, returning contracts, paying the deposit, that changing the closing date means breaking the contract we signed and everything collapses?
 

Vendors are very unlikely to walk away from a sale agreed for a delay of days/couple of weeks. Especially in the current climate. As mentioned above, get your solicitor to talk to their solicitor and explain the situation. Get your mortgage broker to try and find out from the bank when they will be in a position to issue the cheque.
 
No mortgage broker. We're working with them directly to insist the matter is resolved ASAP. I should speak to the solicitor tomorrow. Honestly, I don't think the bank knows, but I've already asked them, and they are well aware of the timeframe.
 
Hi Sarkozy, I wouldn't worry about this at all. Delays of this nature are routine. I just got the keys of my house last Friday. It took 8 days for the cheque from AIB - I don't know how that relates to your timescale. My solicitor was in constant contact with the bank - yours might be able to chase the cheque in the same way. Ultimately the solicitors are familiar with this game and they should know to set realistic timescales for the closing. I know it's stressful but as a previous poster stated, there's no way after getting this far that the vendor will want to pull out and start the process all over again.
 
Elginelf said:
It took 8 days for the cheque from AIB
Click to expand...

This is a good timescale and it can routinely take longer. Quite a few stories on here with people going weeks and months trying to get the loan check out of the bank.
 
Yep, we're told the cheque takes seven days to clear, but that's if certain things get sorted by then, which I'm not convinced they will. We're at the mercy of the bank. The branch says they're on it, but I think they're at the mercy of the mortgage dept and how long it takes them to go through our stuff; we have an assurance that it'll all happen when it should, but I'm not convinced.

And then, I have to have fire cover in effect 7 days before closing? But doesn't that mean if the policy is not effected ASAP, the loan cheque won't issue?
 
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