What happens if a rent to own homeowner lets the house go into foreclosure?

UPDATED: Aug 26, 2011

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Aug 26, 2011Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

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


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 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.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption