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Anyone know what to do if previous owner of house had secured loans on it and is now defaulting on payments ?

(110 Posts)
scatterbrain Mon 16-Jun-08 09:50:03

We bought this house last summer and still get loads of post for the previous owners - my solicitor friend suggested we opened the post to see what was going on and anyway - it appears that he has several loans secured on this house, hasn't changed his address with them and is now defaulting on the payments !

I have written to one of the loan companies and just phoned another one now and gave them his new address - but I am really worried now that our house is going to get credit blacklisted or something because of his secured loans .

Anyone know what we should do to make sure his debts stay with him ??

whoops Mon 16-Jun-08 09:53:12

If he had secured loans on your property he should have cleared them when the property was sold - his solicitor should have checked to see what was registered on the property to clear at the time of completion. What has your solicitor said about the secured loans?

scatterbrain Mon 16-Jun-08 09:58:58

Haven't spoken to my actual solicitor - do you think I should ? Trouble is that we used one of those internet conveyancing companies - so I am not sure they are "our solicitors" as such !

BeauLocks Mon 16-Jun-08 10:03:12

All loans should have been cleared when you bought the house otherwise you did not buy the house with clear title. Could potentially be a cock up by your solicitor.

I see you used an internet conveyancing company. Never a good idea imo but what's done is done. Get on the phone to them and get an enquiry going.

Have a look on the land registry website and check the record for your house to see if there are any outstanding loans registered against your house. Should only cost you a few quid but well worth doing.

whoops Mon 16-Jun-08 10:03:27

They are probably just legal execs or converyancing executives or something if they are internet based.
Maybe worth giving them a call as it should say in the contract or replies to requesitions what debts seller would have had to clear when you bought the house.

scatterbrain Mon 16-Jun-08 10:41:33

OK - have emailed them and asked them for their views !!

Is there any way of checking the land registry thing wthout paying £35 ?

BeauLocks Mon 16-Jun-08 11:17:07

It should only be about £6 or so if you do it online.

Just type in your postcode, find your property and print off the proprietorship and charges register.

finallypregnant Mon 16-Jun-08 12:02:03

The loans have probably been paid off but you should check that the paperwork (discharge) has been completed and registered. If it was only last year there may be a slight delay with registration but your Solicitor will be able to check this immediately.

scatterbrain Mon 16-Jun-08 12:04:59

Right thanks for that BeauLocks - got it now - was £3 - there are about 3 loans secured on the house - and no judging by all the letters they haven't been paid off - they were only taken out last year just before he sold us the house.

It also says that we have made a unilateral application to take over the property - but he is still listed as the owner !!!

I am really getting worried now !

NotQuiteCockney Mon 16-Jun-08 12:05:38

How do you know the loans are secured against the house?

BeauLocks Mon 16-Jun-08 12:06:40

Poor you scatterbrain. I think your solicitor has a lot of questions to answer!

Get in touch with them urgently and tell them it needs to be resolved asap.

Do you have a mortgage? This will have very really implications for your mortgage too.

scatterbrain Mon 16-Jun-08 12:06:57

It says they have Title Absolute !!!

scatterbrain Mon 16-Jun-08 12:09:45

We know they are securde against the house because my dh applied for a car loan a few mths ago and was told he could only have a limited amount as there were loans secured against the house. I have also been opening post from 3 different loan companies chasing payments from the previosu owenrs, threwatening bailiffs etc - and now by looking at the title deeds.

The mortgage company seem to be aware as they are listed on this unlilateral action thing.

Basically we don't own the house do we ??

MrsTittleMouse Mon 16-Jun-08 12:12:40

I would get in touch with your solicitor friend and get advice. Whoever did the legal work when you bought your house obviously screwed up, and they need to sort it out.

BigGitDad Mon 16-Jun-08 12:14:17

You need to contact your solicitors right now and ask them these questions. If they did not do the conveyancing properly you will be wanting to claim damages from them regarding these loans. The additional factor is to consider whether the person selling the house to you has committed fraud in that he sold the house and did not inform the loan companies.
You will need to go the legal route to get your answers on here.
I would also see a seperate solicitor to get advice over the whole matter asap.

BeauLocks Mon 16-Jun-08 12:15:48

The mortgage company won't be aware of this in the same way that you weren't until you made enquiries.

The problem you have is that the Land Register is evidence of title and so for all intents and purposes you do not own the house. You must get onto your solicitor and the Land Registry asap and get it resloved. I would also suggest that you speak to your mortgage company too. They will be able to sort it quickly and will get your solicitor to correct their f*ck up.

PortAndLemon Mon 16-Jun-08 12:17:00

You need a new solicitor, and quickly. Apart from anything else you may very well be needing to sue your original conveyancers.

finallypregnant Mon 16-Jun-08 12:18:26

I'd contact the Law Society for advice from them.

No advice, but enormous sympathy.

Don't panic, this can be sorted.

angry at your conveyancers and previous owners on your behalf.

MrsPuddleduck Mon 16-Jun-08 12:20:35

Scatterbrain - I am a solicitor.

It is VITAL that you sort this out ASAP!!!!

You and your husband should have title absolutle - not the previous owner.

When you buy a house it is part of your solicitors job to get an undertaking from the sellers solicitor to pay off ALL oustanding loans registered. If they are not paid off they will not be able to register the property into your name.

I would immediately phone the solicitor you used and demand and explanation. Do it now and say that you expect a call back within 2 hours or else you will report them to the Law Society. If they have not phoned back within 2 hours phone again and demand to speak to a partner or someone in authority. Make a note of who you speak to and record it all.

BTW - it should take 8-10 weeks from completion to register the house into your name (and that is being generous).

scatterbrain Mon 16-Jun-08 12:25:43

Thanks all - original solicitor - the partner - has replied to my eamil saying that he is on the case !! Will see what he says in a day or so and then take it further as you suggest.

What a PITA !

BigGitDad Mon 16-Jun-08 12:34:05

The mortgage company should be aware of these loans as they should have insisted that these loans be removed when they took title of the property.

scatterbrain Mon 16-Jun-08 12:47:32

Do you think I should ring them ? Or shall I wait and see what solicitor comes back with ?

What's going to happen ? he claerly doesn't have the money to pay off the loans as he is defaulting on his monthly payments - shit !!!

I have such a bad feeling about this !

MamaG Mon 16-Jun-08 12:53:36

I agree with Mrs Puddleduck

Ring him now and demand a phone call in 2 hours

MrsTittleMouse Mon 16-Jun-08 12:55:52

MrsPuddleduck is right. He needs to be on top of this right now and if he isn't then the Law Society needs to know.
It is his screw-up, not yours, though and I wouldn't worry about being responsible for the loans. You have done nothing wrong.

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