Posted on: 20th May, 2009 09:04 am
I am in a lease option contract on a home. The owners filed Chap 13 just under 1 year ago. They have 2 mortgages on this property & though we have paid on time without fail, they stopped paying the mortgage companies 5 & 9 months ago.
We are approved & in the process of buying the home through conventional means. We stopped paying the lease when they informed us of the situation & work with us to purchase the home. Now, we are about to close & they are demanding lease payments for past 3-4 mths even though they are not paying mortgage. We are stalled because we are waiting for their bankruptcy atty to release the home for sale (losing best interest rate too) whom we are also having to pay in addition to all of their closing cost on an "as is" sale. If the atty has to release it for sale, are they even supposed to be directly receiving income from the property? Do you think there is a moral obligation to pay them anything at this point?
Keep in mind, when we got the news, foreclosure was pending - just backed up due to the current state of the industry & we are looking at replacing both A/C units, etc. Fortunately there is equity in the home... if the market recovers. Please advise on the above.
Thanks!
We are approved & in the process of buying the home through conventional means. We stopped paying the lease when they informed us of the situation & work with us to purchase the home. Now, we are about to close & they are demanding lease payments for past 3-4 mths even though they are not paying mortgage. We are stalled because we are waiting for their bankruptcy atty to release the home for sale (losing best interest rate too) whom we are also having to pay in addition to all of their closing cost on an "as is" sale. If the atty has to release it for sale, are they even supposed to be directly receiving income from the property? Do you think there is a moral obligation to pay them anything at this point?
Keep in mind, when we got the news, foreclosure was pending - just backed up due to the current state of the industry & we are looking at replacing both A/C units, etc. Fortunately there is equity in the home... if the market recovers. Please advise on the above.
Thanks!
Hi Mariah,
I guess, there is an agreement between you and the seller of the property. According to that contract you are bound to pay the dues. However, you need to contact a lawyer and take his opinion in this regard as the seller has filed for bankruptcy.
Thanks
I guess, there is an agreement between you and the seller of the property. According to that contract you are bound to pay the dues. However, you need to contact a lawyer and take his opinion in this regard as the seller has filed for bankruptcy.
Thanks
Maraiah,
I am not sure if it makes sense to stop making payments on your lease becuse the house is forclosure. You had an agreement with your renter to pay rent every month and since now the house is in the forclosure process you do not want to pay them.
They probably went in to forclosure due to their fincail situation and you are making it worse for them and now it making it difficult for you also to buy the house you like.
easy way to get closer to this would be pay your monhlty lease as agreed and when the house is available buy it.
Good luck and feeel free to ask.
I am not sure if it makes sense to stop making payments on your lease becuse the house is forclosure. You had an agreement with your renter to pay rent every month and since now the house is in the forclosure process you do not want to pay them.
They probably went in to forclosure due to their fincail situation and you are making it worse for them and now it making it difficult for you also to buy the house you like.
easy way to get closer to this would be pay your monhlty lease as agreed and when the house is available buy it.
Good luck and feeel free to ask.