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Repossession

Bench600
Bench600 Posts: 1 Newbie
in Mortgages & endowments
My daughters house was repossessed over six months ago and I paid off all her outstanding debts including gas and electricity and her account was closed. This week we got a letter from a debt collection agency demanding payment on behalf of Eo-n next for usage for the period between the repossession and the house being sold which we had no control over as we had no access. Surely as the bank repossessed the property and used their estate agent to sell the house any gas and electric used during this time is thier responsibility. As I have said we paid all debt owed and her account was closed at the time of the repossession and we were informed that was the end of the matter.

Comments

  • ACG
    ACG Posts: 24,665 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Call/write to them and explain that. 
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • chanz4
    chanz4 Posts: 11,057 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Xmas Saver!
    tell the debt collection agency to take a run, legally not liable
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
  • DullGreyGuy
    DullGreyGuy Posts: 18,613 Forumite
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    Bench600 said:
    My daughters house was repossessed over six months ago and I paid off all her outstanding debts including gas and electricity and her account was closed. This week we got a letter from a debt collection agency demanding payment on behalf of Eo-n next for usage for the period between the repossession and the house being sold which we had no control over as we had no access. Surely as the bank repossessed the property and used their estate agent to sell the house any gas and electric used during this time is thier responsibility. As I have said we paid all debt owed and her account was closed at the time of the repossession and we were informed that was the end of the matter.
    Did she inform them that she had left and advise that the bank was now in possession of the property?
  • MWT
    MWT Posts: 10,330 Forumite
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    DullGreyGuy said:
    Bench600 said:
    My daughters house was repossessed over six months ago and I paid off all her outstanding debts including gas and electricity and her account was closed. This week we got a letter from a debt collection agency demanding payment on behalf of Eo-n next for usage for the period between the repossession and the house being sold which we had no control over as we had no access. Surely as the bank repossessed the property and used their estate agent to sell the house any gas and electric used during this time is thier responsibility. As I have said we paid all debt owed and her account was closed at the time of the repossession and we were informed that was the end of the matter.
    Did she inform them that she had left and advise that the bank was now in possession of the property?
    Even if she did, we see this sort of problem all the time on the energy forum, the debt collectors just go after the most recent name they can find attached to the property.
  • Hoenir
    Hoenir Posts: 7,742 Forumite
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    Was their equity in the property when it was finally sold? 
  • silvercar
    silvercar Posts: 49,735 Ambassador
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    Hoenir said:
    Was their equity in the property when it was finally sold? 
    Does that matter? This seems to be a utility debt, not a debt from the lender who repossessed. Unless there is a clause in the original mortgage terms and conditions, that the mortgagee is responsible for utilities until the property is sold, I can't see why the equity would be an issue. 

    The lender in repossession may have all sorts of costs relating to the repossession. Who pays the council tax on an empty property if it takes longer to sell that the council allow for?
    I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • MWT
    MWT Posts: 10,330 Forumite
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    silvercar said:
    Who pays the council tax on an empty property if it takes longer to sell that the council allow for?
    Nobody, property that is empty due to repossession is exempt from Council Tax.

  • Hoenir
    Hoenir Posts: 7,742 Forumite
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    edited 4 March at 12:56PM
    silvercar said:
    Hoenir said:
    Was their equity in the property when it was finally sold? 
    Does that matter? This seems to be a utility debt, not a debt from the lender who repossessed. 
    Why would the debt be the lenders to pay?  
  • silvercar
    silvercar Posts: 49,735 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    Hoenir said:
    silvercar said:
    Hoenir said:
    Was their equity in the property when it was finally sold? 
    Does that matter? This seems to be a utility debt, not a debt from the lender who repossessed. 
    Why would the debt be the lenders to pay?  
    Who pays for water, electric or gas used between repossession and subsequent sale or at least between possession and when it is turned off? 
    I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
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