Cheque Rule
We had bought a registered tenanted property in the Feb 16th 2010, Savills auction which was un-mortgageable and found this only the following day after we paid the auction house by cheque, we panicked and stopped the cheque. We were not informed during the auction that the property was Cash Buy only. Later we called up auction house and informed about the matter and seeking assistance for mortgaging the property but they couldn't help. I tried almost all the banks on high street and visited almost 5 mortgage advisors same day. I have been updating Savills about the situation everyday. Fortunately I got a contact over the internet who were interested to buy the property with sitting tenants and agreed to speak to auction house about it. I gave the contact details of Savills Auction house and requested them to co-ordinate. But the interested party called me back saying the property was already been sold to someone else as our cheque was not cleared. I called up Savills and they then informed me that they have already sold the property as the Cheque was stopped also informed me saying that they will take legal action against me for stopped cheque. Months passed on. July 1st we received a letter from the seller this time about the stopped cheque and they are asking us to pay £16000, We are a bit confused of this situation of what to do next ?
In the whole process of securing mortgage we ended up getting into a fraud mortgage advisor company called First National Finance or First National Money which promised to secure a mortgage for us and took £395 £395 £2500 but nothing happened. We are still fighting to get our money with M&S Credit card company based on Section 75 but its taking our life out.
Answer:"Unmortgageable" simply means that many, or all, mortgage companies will not see the property as suitable security for a loan. But it is up to each individual lender to make their own decision, and each buyer to make their own enquiries. It is certainly not for the seller to decide whether their property is mortgageable or not.
In a normal house sale/purchase contracts will not be exchanged until a binding mortgage offer is in place for the property (unless the buyer does not need a mortgage). This is because the buyer is legally committed to complete once exchange has happened.
When buying at auction the fall of the hammer creates the binding contract – it is the equivalent of exchanging contracts. So before the auction you should have completed all the normal searches and enquiries that any buyer would normally do, and you should have arranged your mortgage. Then when you win the auction you are ready to proceed, and if there are any problems you know about them so you know not to bid.
NEVER BID AT AUCTION UNLESS YOU ARE READY TO COMPLETE THE PURCHASE.
Your winning bid created a contract requiring you to immediately pay a non-refundable deposit, probably for 10% of the purchase price. By stopping the cheque you are in breach of that contract and are liable to be sued. Your minimum liability will be the amount of the unpaid deposit, but if the seller's losses are more than this amount you are liable for their full loss. The main loss will be if they had to sell for less to the new buyer. EG if you bid £150,000 and they sold for £100,000 then you would be liable for the £50,000 difference.
The issue with the dodgy mortgage is totally separate.
Answer:The issue is the seller went ahead with another buyer with in a week as we were dealing with the stopped cheque, we went back to give new cheque and make whole cash payment for the property but as it was already sold out we couldn't do much ?
Answer:Police investigating First National Finance Ltd Huddersfield
First National Finance Ltd are just a scam and they are using Hallmark Finance as a front, both are just out to rip people off.
You are just one of hundreds, you need to speak to Detective Sergeant Welch at Huddersfield police station, he is investigate First National.
Good luck.
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