After takeoff, the acft was maneuvered downwind about 1/2 mi south of the arpt at aprx 1000' AGL. When the acft was abeam mid-field, the plt requested clnc to land back on the arpt. He was clrd for right traffic to land on rwy 9R & was asked if he had any difficulties. Subsequently, the plt replied that both engs had lost power. He turned toward the arpt, but was unable to reach the rwy. Drg an emerg landing, the acft hit a chain link fence & was extensively dmgd. An exam revealed there was water & residue in the fuel sys. The owner had purchased the previously seized acft at a sheriff's department sale. Until the day of the acdnt, the acft had not been refuel since it was last flown on 7/27/89. An annual inspn had been completed on 9/22/89. The acdnt flt was the 1st flt after the annual inspn & it lasted aprx 4 min. Neither prop was feathered after the engs lost power.