Legal Question in Real Estate Law in Utah

Lease Option

I have entered into a lease option and have come to find that the other party (who is also the mortgage holder) hasn't been paying the mortgage. We have made all agreed to payments on time but the house (as well as the other party's personal home) are 3 months behind on payments.

The lien holder (Wells Fargo) has dropped by and we're afraid the house will be foreclosed on.

Do we have any recourse? Is this a violation of the contract by the other party as the payments haven't been passed along to the bank?

Thanks in advance for your assistance.

-a worried lessee


Asked on 10/21/08, 1:36 pm

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: Lease Option

Without reading the contract and lease, there is no way to tell whether the owner is in violation of the lease. You are under contract to make rental payments, and your failure to make them is certainly a breach of the lease. You may want to talk to the owner and find out what his intentions are about the house. Wells Fargo is not required to honor the lease if they foreclose, so you should also stay in contact with Wells. In the event of foreclosure, you will have ample notice in advance to get another place and vacate the home - if Wells wants you out.

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Answered on 10/21/08, 2:00 pm


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