Landlord? failure to make mortgage payments

I have a complicated situation. I will try to make this as short as I can without leaving out details. If it is necessary info, I live in Virginia. My fiancee and I entered into an agreement with acquaintances of ours to rent a property with the agreement that we would be able to rent to own. The acquaintance, whom we will call "D", is the "manager" her boyfriend (ex-husband) is a co-signer on the property. We will call him "M". M is currently in a bitter divorce battle with current wife "K" and she is the primary on the loan for the property. The property is a modular home which is located in a mobile park owned by private owners. The private owners do not want M or D to reside here anymore. In the beginning, M and D allowed me to draw up a "standard purchase agreement" which stated that my fiancee and I would be making payments of $600 a month to them which would all go toward owning the property at a later date. This form was signed by "M" and we were informed by M and D that they wanted this form to go to the park owners to show that we would be buying the property. However, 3 days before move-in M and D wanted us to sign a rental lease for their records,but did not want park owners to know about it. Fiancee and I were in a bind and needed a place to go (due to a foreclosure on our own home), so I agreed to sign it, but fiancee did not. M and D said that was fine. It came to our attention later, that M forged his fathers signature on the standard purchase agreement given to park owners. We let this slide. We moved into the property at the end of April. We were not required to pay a security deposit, as we installed all new flooring, light fixtures, etc. to the property. We were told by M that his wife K shouldn't be involved b/c she wanted nothing to do with the property. About a week ago, K shows up at the door, to find out if anyone was even living here, and to inform us that the mortgage company had called her to say mortgage payments had not been made in 3 months (we have been here 3 months, so none of our rental payments have gone towards the mortgage), and the mortgage company was going to take property back in 30 days. However, K, did not want us to go through this, and agreed to fix things. K also informed us that M has NEVER paid any taxes on the property and they are almost $2000 delinquent. K has agreed to take back over the property since she is the primary. She drew up a lease, which states it will become a rent to own at a date of our choosing. K has also stipulated in the lease, that we may make payments directly to the mortgage company to ensure payments are made. K also involved the mortgage company and has given them verbal and written permission to speak directly to us about the property. The mortgage company informed me, that would work with us and K, and did not want to deal with M anymore b/c he has neglected to even talk with them ever and has been delinquent several times in the past. The mortgage company also informed me, that it would be in our best interest to work with K and them directly, and if M had a problem, he could contact them directly. K is also paying off the taxes on the property, to ensure nothing happens in that aspect. After being in contact with the mortgage company and K, the mortgage company informed us, that M did finally make a payment, but it was still nearly $300 short, and the loan was still in default. After much discussion and negotiations, my fiancee and I agreed to bring the loan back up to date by paying the mortgage company directly, and mortgage company noted that WE made the payment. I should also point out, that M and D could never produce a copy of the rental agreement we signed with them, stating that Kool-aid had spilled all over it. There is now a signed, and notarized copy of the new agreement between K and us, we have copies, as does she, and so do the owners of the park, whom I informed of the entire situation. Needless to say, they are not too happy with M and D at all. M and D have always asked for rent 2 weeks early (we always complied to keep peace) stating they were short on cash, and either needed the rent or wanted to "borrow" the money.
Everything has now come to a head, and M and D showed up on the property today, informing us that we needed to pay them directly or we had 30 days to be off the property. I would also like to point out that D has absolutely nothing to do with the property, other than what M verbally agrees to.
My questions are these? Were we right to sign the new agreement with K and is it legal? If it is, will it override the original rental agreement with M and D? The mortgage company says it would, since, technically, M defaulted and violated his agreement with us by not paying the mortgage and putting us in jeopardy, through no fault of our own. We do not plan to stop making payments as we want the property eventually as our own, we will be making payments directly to the mortgage company. Do M and D really have a case to take us to court? The mortgage comp. and K have both informed us to just tell M to call either of them, and they would take care of it. At this point, I am wary of anything and everything. I just want to make sure that we have done what we should, and if there is anything else we need to say or do, to keep M and D out of the entire situation.

Thanks ahead to any and all replies. I will answer any questions that anyone may have.

Thanks again,

Sarah

[boogieduck]

I wanted to add a question, to the others I asked (sorry). Are than any rights that we may have as the legal renters of the lot itself? Since, we pay the lot rent in the park, and it is in my fiancee and I's name, does that help us out any? If matters were to worsen and it came down to it, could we rightfully (with the park owners' consent), have the home removed from the lot?

Thanks again,

Sarah

First you need to see who's name is on the deed to the property. Who is the actual owner of record on that mobile home? Check with the courthouse (usually the tax assessor's office to get this information) then only deal with that person. If K is the owner on record, your lease with her is fine as she is the rightful owner. In that case, M had no right to even rent the property or sell it as he didn't own it. If M owns the property, your lease with him is still valid (whether or not be reneged on his mortgage payments) and you need to honor it, and ignore K. Who is listed on the mortgage is completely separate from who is listed on the deed. I assume both rent amount are the same.

If both are on the deed, they need to work it out. Just keep receipts that show your rent is paid. (Is it in your lease to make rent payments to XXX Mortgage Company? If not, have K write up an addendum to say this, or just pay .) Then as long as you have receipts showing rent paid in accordance with your lease with the owner, the other owner cannot evict you. It is a property squabble between the two owners and they need to settle it in court amongst themselves and leave you out of it.

D has no interest in the property. Unless she has a property manager's license (she would need to have a realtor's license for this) she has no say in this at all. If she is a realtor, ask for a copy of her property manager agrement signed by the owner on record for the mobile home. Without this, she cannot represent the owner's interests at all and you can ignore her.

Your lot rent has nothing to do with this problem. You have no dispute with the lot owners, so moving the home would not help. Plus you have no right to move it since you don't own it. Now if the owner on record wants it moved, that's up to him/her.

[boogieduck]

Thank you so much for your reply. Thankfully, the situation has worked itself out. Apparently, K is the rightful owner of the property. M called a short while ago, to say that he would be backing off, and we could deal with K and we would hear no more from them!

Thanks again for your help!

Sarah