Im in a wierd situation a leas purchase that i signed a contract for is going into foreclosure, my landlord has been taking my rent and not paying his mortgage, does anyone know what options i have at this point, would defeinitely like to still purchase this property but unprepared at this moment becuase of credit isssues
Your position is junior to the lender's position. Your ability to lease and later exercise the option could get wiped out.
You might have a claim against the present owner but that is not so clear and might result is no financial gain.
If you can not buy it is likely your option will become worthless if the foreclosure goes through.
Is the option recorded? You want to make sure that if someone agrees a short sale or other deal (subject-to purchase) your position will be senior to the next buyer.
Have you spoken with the present owner. It might be possible for you to take over the payments and bring the loan current (subject-to purchase). Depending on your state a land contract might be better.
Very quickly you will be running into details where a RE attorney would be advisable unless you are really confident of your RE legal knowledge. Not required but no need to put out more money or sign documents if you do not really understand your full position.
Do you know who the lender is? If you want to work out a deal with the lender direct (short sale mostly is the idea) you need the present owner to sign off so you can speak with the lender about the details.
It can get very messy and you might have to move out. Or there could be a way to work out a solution. It really will come down to the details (property, you and the other parties interest in working something out).
Thx for the info i was thinking of going straight to the lender but i see i have to actually get permission from the borrower first? he hasnt volunteered any info as to why my payments are current but not his, and he says hes taking care of it in two days, over four months of payments :(.
I think still talking to the lender is the best idea, if hes been lying so far nothing is keeping him from telling me the truth later.
At law the legal term for what your landlord has been doing is called "rent skimming", a FEDERAL felony since I believe about the '80s. I'd be on the phone to the U.S. Attorney's office in about 3 seconds. He's defrauded not only you, but the rest of us taxpayers.
You are probably hosed!
Of course you could contact the owner, tell him you're going to contact the AUSA unless he pays you. Then report him anyway dammit.