The rental agreement was made just between us, no lawyers involved.
Depends upon the terms of your lease/option to buy agreement. Are any of your lease payments or a portion thereof going towards the purchase price? If it goes into foreclosure before you exercise the option, you are going to lose any excess. Rental agreements/with options to purchase, contracts for deeds and the like are not enforceable unless in writing and filed of record, normally, except between the parties.
As a practical matter, if it’s a house that you like, I would talk to the lender or his attorney if it’s really in foreclosure. He or she will work out a deal with you and they might even keep the lease going with you. A property can be foreclosed with a tenant living on the property, though the rents are either going to be paid into the court pending the proceedings or to the lender. If you are current, the lender is going to honor the lease….however, you should get legal advice to protect your rights. This is NOT the proper forum for you to decide what to do. There are too many other factors involved without you relying soley upon what people suggest here. Go get LEGAL advice as soon as you can.
I think you are going to be out of luck.
Vague question you are asking and not enough information provided. You said ….."rental agreement was made just between us"….. do you have a Purchase Option Agreement in writing or not really? You better contact a lawyer ASAP regardless. There are other forums that might help you better but this is not the right forum for your question.
As someone already pointed out, a Lease Agreement is totally separate from Purchase Option Agreement.
Your options still exist until title changes hands and even then your lease will survive the foreclosure (just make sure you stay advised on who to send your rent check to). If you are presently in a position to buy you can exercise your option at the price you negotiated with the original seller/landlord, but it is advisable to wait until after foreclosure (which will nullify that part of the contract) because you will likely be able to buy it for less than previously agreed.
If you have a lease option to purchase the property, do you want to buy it? This will probably take care of the foreclosure as the seller can use the money to pay off the loan.
Well if you had it in writing, you had better get an attorney and quick!
If no writing u r probably screwed. Some lease purchase agreements accord a credit for past rental payments toward the purchase price. If the house is foreclosed, u lose it.
Get in touch with the foreclosing mortgage company.
See if u can buy it from the company after the foreclosure. Offer something more, but not much more than the amount due on your landlord’s mortgage before foreclosure.
iF U ARE BEING ACCORDED A CREDIT FOR RENT PAYMENTS AGAINST THE PURCHASE PRICE U CAN SUE THE LANDLORD FOR THE CREDIT HE WAS SUPPOSED TO ACCORD TO YOU. If not in writing, forget everything. look for a place to move!
Contrary to the other responses. It is my opinion that you should have legal recourse in this matter. If you paid a deposit it should most definitely be yours. If you have an option to buy, and your agreement states that a certain percentage of the payment goes toward a down payment, then you should be entitled to a refund as well as return on your deposit. You should contact an attorney. I am including a link to a legal service that will answer all of your questions for a nominal fee.
Look else where! The house is going into forclosure.
Then you have no "lease option" and only a month to month lease.
Illinois and I would wager every state requires any contract to purchase real estate to be in writing so you have no contract.
And I would also wager that the landlord didn’t have the right to enter into a lease option, most if not all mortgages don’t allow that without the expres written permission of the lender.
A rental agreement is completely different than a lease option agreement and one has nothing to do with the other.
Apparently you have a lease agreement which means that you are a tenant who is renting the house from the owner.
Now, that said the owner hasn’t made payments to the lender and if the owner has received a notice of default, then yes the house is in the process of being foreclosed on.
At this time it would be wise to find another place to live and move out. You didn’t need a lawyer to sign the lease agreement with the owner.
You probably won’t get your deposit, if you gave one, back either because the lender will be wanting it.