MS Foreclosure – Landlord going into foreclosure…help!!?

June 4th, 2009 | by admin |

My husband and I entered into a lease purchase contract with a builder 6 months ago. The lease was for a year. We made a $5000 deposit that was supposed to go toward the downpayment on the home. We found out last week that the builder is going into foreclosure (process started 4 monts ago) and the house will go to auction 3/6/09. My husband and I have decided that we no longer want to deal with this and want to pack up and leave. Will we be penalized for this even if the builder will no longer owns the home? Also do we have any rights to get out deposit back (we are in the state of Mississippi)?

Thanks for your time all suggestions are appreciated!!!

You need a lawyer to review your documents and see if you can recover your $5k.

Since the house is being sold at auction, you might need to consider that your money is gone.

If in your shoes I would pack up the bulk of my stuff, but stay right where you are at. If you want any hope of recovering your deposit, I would not leave until forced to.

But for goodness sake go and consult with a lawyer or two and find out what if anything you can do.

Good luck

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  1. 4 Responses to “MS Foreclosure – Landlord going into foreclosure…help!!?”

  2. By Gem on Jun 5, 2009 | Reply

    You need a lawyer to review your documents and see if you can recover your $5k.

    Since the house is being sold at auction, you might need to consider that your money is gone.

    If in your shoes I would pack up the bulk of my stuff, but stay right where you are at. If you want any hope of recovering your deposit, I would not leave until forced to.

    But for goodness sake go and consult with a lawyer or two and find out what if anything you can do.

    Good luck
    References :

  3. By realtor.sailor on Jun 5, 2009 | Reply

    Google landlord tenant laws in your state. When ownership changes, either a sale or foreclosure, the new owner must honor all existing leases. Continue making your rent payments to your landlord until directed otherwise. If you leave before the lease expires you are liable to your landlord for lease payments through the end of the lease term. As far as your $5,000 deposit you should file your claim in small claims court. At the very least you will get a judgment against the builder.

    realtor.sailor
    References :
    I'm a property manager

  4. By John M on Jun 5, 2009 | Reply

    call the bank that holds the builder's note and tell them what is going on. they may be more than happy to sell you the house for less than your lease option shows.
    References :

  5. By Ken B on Jun 5, 2009 | Reply

    You need to get on his bankruptcy as a creditor in order to claim your $5000.00. You should also contact the bank that holds the mortgage note on the house that you agreed to purchase, at this point in the economy, they should be willing to make lots of accommodations to keep you in the home including crediting you the $5,000 paid toward closing costs. You are in a position to bargain hard if you want to buy the home.

    If the builder does not list you as a creditor on the bankruptcy, you may be able to sue in small claims for the $5000.00, he might also face criminal charges if fraud was intended.
    References :

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