My first post, so let me say TIA for any and all assistance. And for what it's worth, I'm a Moderator on a custom knife forum, so I'm familiar with a forum's operation and social nuances. That being said, we're most appreciative for your input. Here's the deal............
We are renting a lovely home in northern Michigan. I am a Realtor (new to the profession). I wrote the lease, as well as the subsequent lease with option to buy. All are contracts pulled from legal websites, and conform to MI Landlord/Tenant Law. There are no additional peculiarities or inclusions in the leases.
We have a 2 year lease (ends January, 2008) with option to purchase. Rent is $1,500/month. We've put down $5,000 towards the option. Security Deposit of $1,800, Pet Security Deposit of $1,000. Offer to purchase on option is $345,000.
Owner is a builder. He built two homes, and got squeezed HARD between mortgages, so he rented us the house we live in. It's less than 2 years old. He sold the house he lived in and moved his family to Florida for work.
He calls tonight to tell me they are declaring bankruptcy. Sounds like the house has a 1st and 2nd mortgage. They owe $335,000. I believe that to be the total they owe (1st + 2nd), thus the "mortgage" is probably less.
Here's my questions...........
- Leases run with the land, but what about with foreclosures? Can we be evicted?
- How can we find out (short of asking the landlord) what the 1st mortgage is? We may be interested in purchasing the home. BTW, we get along well with the landlord, he even offered to waive rent based on the value of the downstroke we put down towards the option.
- Is this an opportunity if handled correctly (i.e. - Are we sitting pretty with a chance to get a good deal on the home)?
- I own a lot with an appraised value of $150,000 that is presently for sale. How can I use the equity in this lot to get into the house, if I can get the house for a good price?
- Your opinion of the situation?