What happens if a rent to own homeowner lets the house go into foreclosure?
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What happens if a rent to own homeowner lets the house go into foreclosure?
General agreement said that he will provide title after final payment is received. Can we take him to court?
Asked on August 26, 2011 Maryland
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If your have an agreement to lease a certain property with the option to purchase, is there a document recorded upon the property setting forth your option to purchase? Typically such a document is recorded in order to let all others know that there is an option in effect for one to buy the property so that the property will not be sold out from the person holding the option.
In order to save your rights to purchase the property (assuming you want to still buy it) you will need to cure the default to stop the foreclosure and somehow get the property owner to transfer title over to you under the terms of the written agreement with you.
The concern I have is that if the property is in foreclosure, there most likely is no equity in it for the property owner to allow this to happen. If there is no equity in the property, why would you want legal title to it? Meaning, why would you want to service the exisiting debt load assuming your agreement with the landlord is that you would assume the loan on the property and receive legal title where the exisitng loan exceeds the value of the property?
You should consult a real estate attorney on your matter.
Good luck.
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