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Old 05-25-2010, 06:21 AM
 
8 posts, read 34,808 times
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Has anyone been in this situation that can help us? My husband and I signed a contract with our landlord 3 months ago to lease to own his house. We gave him a $8000 downpayment and we pay $1200 a month, which $200 of that is suppose to go into an account for another downpayment when we purchase it in 2 years. Everything seemed fine till last Friday when we were served papers saying that the bank is foreclosing on the property because the owner hasn't paid a mortage payment in 7 months. Does anyone know how long we have before we have to move? Do we continue to pay rent? Would the bank be able to put it up for sale while we are still living her? Is our contract voided because the owner broke the contract? Would I win my case if we brought him to court? We live in Wisconsin.
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Old 05-25-2010, 09:46 AM
 
Location: La Jolla, CA
7,285 posts, read 14,332,447 times
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What does your contract stipulate about delinquency (either yours or his)? Without knowing anything about your contract, how can anyone tell you if you will "win your case"? Obviously something is not right, as your contract was signed well after the mortgage was in arrears. Judging from the fact that you signed a contract on a house with a delinquent mortgage, I'm going to also guess that you didn't have an attorney look at the contract, and didn't research the status of the mortgage (or the owner of the property). I'm not admonishing you. I'm simply using these as reasons for you to get your rear end to an attorney, contract in hand, today.
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Old 05-25-2010, 12:26 PM
 
2,133 posts, read 5,400,671 times
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The house behind us fell into this exact same situation. The family was renting to own. They lost every dollar they had invested and had no recourse. Have your attorney review your contract to see if there is anything there you can use.

As for time to vacate. The family I referred to was given 30 days, but took 60. It's not that easy to find a rental large enough for a family of 6. The bank did work with them for the extra time but if they had been there on day 61, they would have been removed.
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Old 05-25-2010, 04:29 PM
r_k
 
Location: Planet Earth
836 posts, read 1,957,784 times
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Step 1 should be to consult a real estate attorney.

In case you still want the property you can consider buying it from the bank after they foreclose.
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Old 05-26-2010, 08:18 AM
 
8 posts, read 34,808 times
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Quote:
Originally Posted by 43north87west View Post
What does your contract stipulate about delinquency (either yours or his)? Without knowing anything about your contract, how can anyone tell you if you will "win your case"? Obviously something is not right, as your contract was signed well after the mortgage was in arrears. Judging from the fact that you signed a contract on a house with a delinquent mortgage, I'm going to also guess that you didn't have an attorney look at the contract, and didn't research the status of the mortgage (or the owner of the property). I'm not admonishing you. I'm simply using these as reasons for you to get your rear end to an attorney, contract in hand, today.
The contract states that if either party defaults the contract is voided. We were unaware of the delinquent mortgage when we signed the contract. No we didn't have an attorney we just had a notary replublic verify she was there and that both parties agreed to the contract. I have called about 20 attornys in the last 2 days and no one seems to want to help me.
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Old 05-26-2010, 09:16 AM
 
8 posts, read 34,808 times
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Originally Posted by BacktoNE View Post
The house behind us fell into this exact same situation. The family was renting to own. They lost every dollar they had invested and had no recourse. Have your attorney review your contract to see if there is anything there you can use.

As for time to vacate. The family I referred to was given 30 days, but took 60. It's not that easy to find a rental large enough for a family of 6. The bank did work with them for the extra time but if they had been there on day 61, they would have been removed.
Obama passed a new law in May stating that after the house is foreclosed on, the tenets has (I believe) 90 days to move. The procedings just started on the forecloser so I think we may have some time. I been trying to get some advise from lawyers but it seems that I can't get the advise I am looking for. Someone had suggested to me to open a escrow account and start putting my on time rent money into it. The forecloser process could take up to 6 months so 6 months of rent into an account would be $7200 of my $8600 that he stole from us. So I think this what we will have to do. Thanks everyone
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Old 05-26-2010, 01:16 PM
 
136 posts, read 384,987 times
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Basically You do not have a purchase agreement in effect untill the downpayment agreement has been met in full.I do think that you would be awarded the $8000. back provided that it was for the purchase/downpayment.Good Luck ! Also I think it is a shame that this happened to you and ask the landlord point blank for the money returned if he can not redeem ownership of the property!
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Old 05-26-2010, 11:44 PM
 
Location: Chicago
38,703 posts, read 92,557,160 times
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You to talk to an attorney, sooner rather than later. The short version is that your claim will be subordinate to the lender's unless they were completely incompetent in their procedures. Otherwise, if the amount from the sale isn't enough to cover the outstanding balance plus expenses, you're SOL.

Why someone would enter an LTO arrangement on a property that is not owned free-and-clear is beyond me.
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Old 05-27-2010, 08:37 AM
 
8 posts, read 34,808 times
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Originally Posted by Leaving123 View Post
Basically You do not have a purchase agreement in effect untill the downpayment agreement has been met in full.I do think that you would be awarded the $8000. back provided that it was for the purchase/downpayment.Good Luck ! Also I think it is a shame that this happened to you and ask the landlord point blank for the money returned if he can not redeem ownership of the property!
We have an appointment with an attorney on Tues. I will let everyone know the outcome. Thanks
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Old 05-27-2010, 08:39 AM
 
8 posts, read 34,808 times
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Quote:
Originally Posted by Drover View Post
You to talk to an attorney, sooner rather than later. The short version is that your claim will be subordinate to the lender's unless they were completely incompetent in their procedures. Otherwise, if the amount from the sale isn't enough to cover the outstanding balance plus expenses, you're SOL.

Why someone would enter an LTO arrangement on a property that is not owned free-and-clear is beyond me.
We are going to try getting him procecuted for fraud. I will let you know the outcome after Tues.
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