what problems do i face after completion on a repossesion

jhe · 20 October 2009 at 5:57PM

hi, just exchanged contracts yesterday on a repossesion. i would be grateful for advice from anyone who has bought a repossesion before. is getting the gas electric reconnected a problem if the previous owner defaulted? what other problems might i face apart from debt collecters turning up on the doorstep!thanks

ILW · 20 October 2009 at 6:02PM

The previous owners standing at the gate weeping can get a bit wearing.

jhe · 20 October 2009 at 6:13PM

nah, that wont happen think they made a quick exit and left the area

katsu · 20 October 2009 at 7:29PM

Don't get me started... sorrry, I'll try not to rant.

As you said - contact from debt collectors - be ready for letters, cards, conversations in which they ask you to prove the debtor no longer lives in your house (I made the possible mistake of calling some and had surreal conversations in which I explained I didn't know how I could prove they were not here so suggested they came and stood outside to watch them not coming and going!).

Debts will be sold on and on - we had lulls then new collectors started up. This went on for around 2yrs. Be prepared for the long haul.

Baliffs letters - we were getting letters (to the occupier, not us by name, obviously) threatening to try and get into our house to take goods. I went bananas over the phone and was advised by a chap to take my valuables away on holiday with me (we were due to be away around that time) and to leave documents out in the house to prove we were new owners. I actually ended up faxing them proof I owned the house. This was one of the worst bits. I was afraid to pop to the corner shop leaving the bathroom window open incase I returned to find a debt collector inside. This was very inconvenient as it was a warm summer.

The ex-residents of our house had documents to prove their address, so still ran up some new debts - be very careful not to throw away what you think is junkmail from the local video store etc without checking it first. We had to visit the video store as they were chasing our address for films borrowed after we moved in, from new accounts the ex-residents opened.

Utilities - British Gas forced me to keep the prepayment meter going to prove I could pay my bills for a while before they would change it to a normal one (we'd never had gas before so this could not have been based on our previous record)! Annoying and costly.

For me the best bit came hearing people talk about the dodgy house and realising they meant mine and having to say "actually they no longer live there..."

Good luck and don't be too put off by this. As our house had been vacant a while, I didn't expect this, so was shocked and had had no idea to expect this as I assumed everyone they owed money to knew they no longer lived here. You seem to be more clued up (I'd not thought to ask people) so I'm sure you'll be fine. We developed a fine line in dark jokes about it at work.

jhe · 20 October 2009 at 8:09PM

thanks katsu for your reply.we are expecting to be contacted by debt collectors, we actually know the "character" who owned the house previously, and know the history leading up to the repossesion, the person was well known in the area so people know we are to be the new owners and seem quite relieved the house has been sold at last, incase anyone thinks we are trading on someones misfortune buying a repo, it wasnt a family house who fell onto hard times and we paid the full asking price for it

katsu · 24 October 2009 at 1:48PM

I've not had anyone say I was profiting from someone else's misfortune, rather people say "ooh, you must have got it dead cheap" - I wish it had been as cheap as people imagine they are!

Electricity was fine BTW. No silly problems there but it wasn't instant getting reconnected.

Water was turned off too - do you know if yours has gone metered? Ours had and the meter was hidden from view by garden plants. You may want to find it to check they start you off with the right reading.

Gas meter cupboard key was missing so I needed a new key from the hardware store.

jhe · 24 October 2009 at 2:21PM

hi katsu. we complete next week so will know a lot more then. i have found out who the gas/electric suppliers are,so after a phone call found out they have not actually disconnected the services they advised to just turn them on then contact them with meter readings. contacted the water authority and they said the same, not disconnected, they didnt mention it was a water meter.like you say not all repos are cheap. although ours is below market price, this was because of the amount of work that needs doing to it.its been empty a long time and was neglected by previous owner, plus it has been vandalised , so lots of work to do!in the long run will probably cost more to put it right than buying a modernised house in the area for more money, but we are looking forward to the challenge.

wicketcw · 18 November 2009 at 7:35PM

Hey, hope you don't mind me hijacking this thread to as a question myself. We are in the process of trying to buy a repossession too.

The bank selling the place insist on a clause that the sale does not include fixtures, fittings or chattels.
Our solicitor says it is because they aren't certain that everything is fully paid for and they are covering themselves. I'm a bit worried as new double glazing has been put in and a new kitchen and oven. What if the company who installed the windows wants them back?! How does that work?!

jhe · 18 November 2009 at 7:46PM

hi wicketcw, we never had that problem. our house had a fitted kitchen[an old one] and a new bathroom suite but the bank didnt mention anything else.when the house is sold to you, your solicitor will check their are no second charges on the house but other than that any existing debts belong to the previous owner,i can understand why you are concerned
just reread your post and realised you mean the bank who have repossesed have said this. surely if the house cant be sold with the kitchen etc it must be unmortgagable.are they saying they are going to remove everything or just let you buy with the risk of debtors turning up to remove. i think i would walk away from it unless it is cheap enough for you to replace these things

Radiantsoul · 18 November 2009 at 8:45PM

Odd as the banks security would be over fitting as well as the land.

I doubt the double glazing company have a lien or retention of title. The biggest risk is the previous owner want to come and recover their chattels.

bootalishus · 18 November 2009 at 8:51PM

Hi
we bought a repossession this summer. Not had any major problems. Our gas and elec was still connected as well. Just be careful when turn the water back on he may have deliberatly damaged pipes etc to cause flooding.
had the usual list of bills from gas, elec, water, phone etc. I just opened them and phoned and told them it had been repo'd and I was the new owner - you will have a new account on all the utilities so they will know you are not lying. Then I would post them back with return to sender with a note on the front saying house repossessed.

This has all stopped now. We have had no balliffs knocking or hassel. The neighbours are all pleased the house is occupied and the front is tidy.

Also ours had the clause in about chattels I think this is a pretty standard clause and I understood it that once you had completed it was yours - it just covered them in the period upto completion if another debtor got wind it was being sold and come and took their stuff back. Check with your solicitor.

what problems do i face after completion on a repossesion

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