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Original poster

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

109 replies

scatterbrain · 16/06/2008 09:50

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 ??

OP posts:
whoops · 16/06/2008 09:53

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?

Original poster
scatterbrain · 16/06/2008 09:58

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 !

OP posts:
BeauLocks · 16/06/2008 10:03

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 · 16/06/2008 10:03

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.

Original poster
scatterbrain · 16/06/2008 10:41

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

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

OP posts:
BeauLocks · 16/06/2008 11:17

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 · 16/06/2008 12:02

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.

Original poster
scatterbrain · 16/06/2008 12:04

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 !

OP posts:
NotQuiteCockney · 16/06/2008 12:05

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

BeauLocks · 16/06/2008 12:06

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.

Original poster
scatterbrain · 16/06/2008 12:06

It says they have Title Absolute !!!

OP posts:
Original poster
scatterbrain · 16/06/2008 12:09

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 ??

OP posts:
MrsTittleMouse · 16/06/2008 12:12

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 · 16/06/2008 12:14

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 · 16/06/2008 12:15

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 · 16/06/2008 12:17

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

finallypregnant · 16/06/2008 12:18

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

youknownothingofthecrunch · 16/06/2008 12:19

No advice, but enormous sympathy.

Don't panic, this can be sorted.

at your conveyancers and previous owners on your behalf.

MrsPuddleduck · 16/06/2008 12:20

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).

Original poster
scatterbrain · 16/06/2008 12:25

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 !

OP posts:
BigGitDad · 16/06/2008 12:34

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.

Original poster
scatterbrain · 16/06/2008 12:47

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 !

OP posts:
MamaG · 16/06/2008 12:53

I agree with Mrs Puddleduck

Ring him now and demand a phone call in 2 hours

MrsTittleMouse · 16/06/2008 12:55

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.

mumoverseas · 16/06/2008 13:03

Hi Scatterbrain, advice by MrsPuddleduck is spot on. Don't be fobbed off by the solicitors who did the conveyancing, keep chasing them.
I had lots of problems last year with my ex-husband. Although I got rid of him 5 years ago (the house had been in my sole name for 5 years before that)problems started last year. After our divorce he bought his own place but then last year I started getting loads of post for him from various credit card companies etc. On making enquiries it turned out his flat had been repossessed and for some reason, all his creditors started chasing me! It has taken over a year to sort this out as at first I was just too nice and kept taking his word he would sort it. He moved to Ireland (where his new wife lives - poor cow, she doesn't know the half of it) and I didn't have an address until recently. I kept phoning up the various credit card companies and other creditors and although they kept saying they would amend their records to show he wasn't there I still kept getting demands/threats of bailiffs/ccjs on a weekly basis. In the end, having already sent them copies of the decree absolute and other docs, I eventually sent them a copy of the office copy entries proving the house was mine and had been for years. It only cost 7 but was money well spent. Since then they've left me alone! Also, it may be worth writing to experian and equifax, the two main credit reference agencies and explaining the situation to them. Good luck!