Undersold

[glenatron]

We're currently working to sell the house I am living in, which I own a little part of but belongs to the family as it used to be my granny's house. This is fine- it was always part of the plan to do things this way - but the process is very frustrating.

Twice we have been under offer. Twice the sale has fallen through. In both cases it was because of building societies refusing to offer buyers a mortgage.

In the first case, the owner had a buyer lined up on their existing house. They wanted to move the mortgage to this house for the same amount on the same terms, so it would have been exactly the same to the mortgage company as it had been. Because they banked with Santander and Spanish banks were falling over left right and centre a couple of months ago, they refused to allow the same money to be loaned on the same terms to the same person as it was currently being loaned to.

Today we hear that the second offer has fallen through. This time the buyer had their own house under offer, but their buyers were refused a mortgage because the house was "too near a railway line." The buyers were quite aware of this, but apparently you can't get a mortgage if the house you are seeking to buy is within earshot of a railway line, because the building society knows better. But the real beauty of this is the logic given by Nationwide for not offering the mortgage: They wouldn't lend the money to the buyer because the buyer wouldn't be able to sell the house because future buyers wouldn't be able to get a mortgage on it. So what they are saying, exactly is: "We won't lend you money because we won't lend you money."

The government remain baffled as to why the economy, in particular the property sector, is stagnating.

Comments

[harnessphoto.livejournal.com]

That is so frustrating :(

[glenatron.livejournal.com]

It's annoying because it's a bit like life is on hold while this goes around and around. Also I'm constantly having to tidy up, though that is not entirely a bad thing as the encouragement does help...

[northwesten.livejournal.com]

this is why the government should of let all the banks fold like a business would of done. It be painful but least we recover from it and get up there like Iceland.

I have never been a fan of buying a house my self like to rent and be able to move on short notice when need be.

I hope it goes well for you at the end!

[glenatron.livejournal.com]

I totally agree about this actually. The banks wanted to be free to be capitalists red in tooth and claw, then came crawling back screaming "help! help! the sky is falling" the minute their obviously stupid markets went wrong. Every time a bank gets bailed out it is another piece of stickytape on the massive, crumbling, dam of modern capitalism, but it's not addressing the problem, so it's not going to prevent the whole edifice crumbling eventually, it's just stringing it out.

[northwesten.livejournal.com]

yep and look at European union it's going to fall and the people going to turn the tied soon. When it does it going to hit the US hard. That's why I am staying with Walmart as i not going to find another job with benefits because in the end I get the pink slip when the shit hits the fan. So right now I baring though it.

[spirithorse21.livejournal.com]

This is the problem the American market had too. These big banks really seem "too big to fail," and it seems like they are lording that over the very people who support them. Sometimes, I hate the corporate cog.

[glenatron.livejournal.com]

The government here have given banks huge amounts of money to inject liquidity into the economy but instead the banks are just sitting on it, like hideous obese giant spiders, bulging bellies rolling over vast quantities of cash that they covetously maintain in their rancid nests.

Aside from that I like them.

[clevortrevor]

It's so nice to hear other countries are ridiculous too. Sometimes it feels like it's just us. I hope you're able to get it sorted soon - do you have a place lined up?

[glenatron.livejournal.com]

Not yet- I want to be confident that this one is selling before I go too far down that road. I will be able to stash stuff at my parent's house in the interim so I will get on with that over the next few weeks while I'm unemployed...

[glenatron.livejournal.com]

Definitely not- it would need a lot of doing up to be rentable and with the complicated ownership it would result in a lot of expense for relatively little benefit. Selling it is definitely the way forward, but of course that requires a working market and lenders seem determined to avoid that.