Seller Breach On A Land Contract
I'm trying to help some friends who are in a bad situation with a Land Contract. My friends entered into an agreement to buy a house in Indidna. The contract is pretty lame and the Seller did not sign it at the time, the buyer did. The agreement was that the buyers would pay rent until the owner's mortgage was paid off. They have been in the house now for two years and all reciepts showing on time payments. They have also done some major renovation to the house. They just recieved a notice of foreclosure naming the owner as defaulting on the loan and has not made payments for 5 months.
I noticed the foreclosure notice also is in the owner's ex- wife's name also.
They have paid about $10,000 in rent that was supposed to go toward the mortgage and another $5,000 in labor and materials fixing up this house.
What are their rights. Any legal remedies?
Thanks ....Moonstar
Well its a mess no doubt. They probably have the right to cure and re-instate the first. But they also have to figure out what to do with their "lame" Land Contract. They need a good real estate attny rapidly.
You indicated that the seller did not sign the contract--only the buyer signed.
Tell your friends to run--not walk--to a RE attorney.