lease purchase tax problem (tax lien, foreclose, mortgage)

[tcar6736]

I need advice.. Im currently living in a lease to purchase home. part of my monthly payment was to go to an escrow account for my taxes. I recently was served a notice that the taxes on the home has not been paid from 08 to current. They also stated that a Levy on the land has been issued. They will sell off the debit on 11/2. If I move out the house will I be breaking the contract. or did the company. What are my options?

[JerseyEstate]

I presume what you are saying is that you make one total payment to whomever and that payment includes the property taxes. And then the homeowner or the lender should have paid the taxes.

Obviously, taxes were not escrowed with the lender. If they were, they would have been paid by the lender. The homeowner (more than likely) had a non-escrowed loan. And when you sent your payment, they pocketed all the cash and never sent a dime for taxes.

After not being paid for a while, the tax authority will sell that tax lien to a third party and there will be a lien against the home.

You need to take a look at your lease option contract and talk to the owner. You also have to wonder if the mortgage is being paid. When your option to buy comes around, take a thorough look at everything. You might not want to buy.

Good luck.

[JerseyEstate]

I neglected to mention, you do not have to rush to move because the tax debt was sold.

The house wasn't sold, just the tax debt. At some point, the buyer of the tax debt could foreclose, but your state has laws as to how soon that can be. Could be as long as 3 years.

But again, read your contract. If anything, the owner first broke the contract when taxes weren't paid.