Legal Question in Real Estate Law in Georgia

My husband and I are leasing under a lease/purchase contract. The contract states that all of our payments will be applied to the mortgage until we close on the house. It is a 3 year lease and we have 16 months left. Last month we found out that the house was up for auction because of nonpayment by the seller. The morning of the auction he did something that took it off of the auction list. I am concerned that this could happen again at any time. Would we be able to terminate the contract since he wasn't paying the mortgage with our rental payments since they were to be applied to the mortgage?


Asked on 3/05/13, 6:58 am

2 Answers from Attorneys
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

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Answered on 3/05/13, 7:06 am
Scott Riddle Law Office of Scott B. Riddle, LLC

Virtually all lease/purchase agreements are at the mercy of the lenders, as the lessors take the risk that the lender will foreclose. You might have a claim against the seller for contract damages if that happens, but realistically, suing someone who can't make the house payments, or has to use the money to pay other bills, is not a great bet to recover anything. What you can do now depends on the language of the contract. It certainly seems wise to explore whether or not you can just move on and just write this one off as a lesson learned.

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Answered on 3/05/13, 7:11 am


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