What are landlords rights upon lease purchase termination by leasee/

[Miller]

I set up a purchase lease agreement back on March 9,2008. (I was fighting with the mortgage co. to lower the current monthly payment). Basically a couple in their 40's wanted to lease our home for 2 years and then purchase it when the lease was up, or during the lease term if the market value was there. They failed to pay the march payment on time and then ignored us for the April payment. I started the 3 day pay or quit notices and recieved a response. Thet calimed that they needed an actual pruchase agreement contract from a realtor because they felt they would be paying the house payment and had no guarentees that we would actually let them have it in 2 years. Well my mortgage co. worked out a lower payment and my tenants recieved the notice by Fed Ex at the residence. They opened it and found out that the payment was lowered and that they were putting the back 2 plus May 1's payment into the modifacation and the new payment was due June 1 2008. The June payment was paid. Meantime it didn't appear that our tenant was occupying the property, but someone was. On July1 2008, I recieved a phone call that they have to move to New York to rebuild the area where the planes hit the buildings!!!! They will be moving out over the weekend and into next week. The moving truck was in the yard today, but when I arrived there it was gone. What the heck can I do. These people have everyone calling me from past business and he used my old address. They are wanting to place liens on it and finding that I am the leagal owner. Everyone is after them for money. A few of us are stating in contact, They have said that they are going to western union us the payment for July, but they also said they would be calling us and we haven't heard from them. What are my rights??? I have no money to go after them and now I am faced with a forclosure because we had an agreement with them to purchace up to the end of the lease. HELP anyone HELP PLEASE!!!!!

Sounds like a small claims court case against them is in order. This would get you a judment against them so you could place a lien on any future property they buy. You should be able to get the back rent payments that they owed and some future rent (how many months worth depends on your state and your lease contract).

My question is why did they need to know what your mortgage payments were at all? A lease purchase means they pay a set amount each month (the rent plus an amount toward a down payment, or a rent amount where a percentage can be credited to them for a downpayment if they proceed with purchase). Your mortgage has nothing to do with them. They are not on that mortgage. Your name is one it. Until they finance the property in their own name, it is none of their business what your mortgage amount is.

If you allowed them to have contractors work on the property, and they failed to pay these contractors, they can place liens on your property. These would be second to any existing mortgage (first come - first paid, so to speak). If it is foreclosed and sold at auction, the proceeds would be paid out in that order. If these people are merely other creditors (credit cards, rent to own, departnment stores, etc.) you can simply tell them that they moved out unexpectedly in violation of their lease and you are in the same boat (the tenants owe you money) as they are.

If you can get thier current address or employers, have them served there for the small claims court case. It costs very little for small clais court and you do not need an attorney. The judgment is good for 7-10 years (depends on state) and they may buy property in that time. They would have to pay you off to finance the property they buy since this will show up on their credit report. Good luck.