Owner broke Lease Purchase Agreement - Many times

[MrsMeagan]

Does this mean we can back out now? We are contracted to buy the home in May of 2011 but have already realized we do NOT want this home. The owners of the home have broken many rules in the contract which include - not paying the mortgage for 3 months in a row, taking out a 3rd mortgage, and not paying taxes and insurance on time.
With the owners breaking this many rules does that mean they broke contract and we can back out now? .....I hope

We dont want our deposit monies back or anything else we just want to walk away free and clear before anything else happens.

It is all written in the contract that they can not do these things. They were not aloud to take out any other mortgages, all payments had to be made on time, that included taxes and insurance. As per contract we are to get proof of payment and we didnt get it for three months in a row b/c payment was not being made. Then husband took over instead of the wife (its a divorce situation) and he promised to make timely payments. Except now he just got married and took out a mortgage on the home. He informed me of this like it was not big deal he was just letting me know so I had a title search done and sure enough there are now 3 mortgages out instead of two.

 

[Gail_in_Georgia]

If you break your contract (based on the claim that the owners broke theirs) and they sue you for such, how are you going to prove you were damaged by their actions? Have the back mortgage, taxes and insurance payments now been paid or is there a risk that the home will go into foreclosure?

While it is understandable that you fear losing this house to foreclosure, how much would you lose in terms of your deposit monies? Would it be a smarter financial move for you to consider purchasing the home now instead of waiting until 2011? Would this be your first home purchase where you could take advantage of the first home purchase tax credit?

Gail