In a lease option and need help....

[Hwarner98]

We are currently in a lease option on VA. We love the house, can afford the house, but when we went o do the financing, it did not pass the home inspection. The home has catastrophic failure of the footer. The house was literally splitting in 2. Upon inspection it was also noted that there is only 1 cinder-block piling holding the whole upstairs up the floor joists. The home is a tri level and the wall that is underground is leaking. It is causing a severe mold issue..... I do have pictures, is is really disturbing me....

For the last year we have been asking for the electric to be fixed. When my husband plugs his power tools in the garage , the power in the whole house goes out.

There are several other issues that she refuses to address... I just don't want to be stuck with a money pit.....

We paid a $7,000.00 down payment as we were told, but now they are wanting to "take it off" of the end of the cost of the house.

I do have pictures and I just don't know how to talk to the home owner anymore. We have been in the home for a year. I just don't know what to do. We are a military family and this is our first home buying experience and so far it has been horrid!!!

Any help or advice would be great!!!!

[herbster]

Well I don't know where to start. First the good news. Taking the downpayment off the purchase price is typical. Second why didn't you inspect this piece of s__t before you went under contract. You don't want this place. Seek an attorney to try and recoup some of your money. At the very least, get something else and report this owner to some authority so they don't scam someone else. Herbster

[Hwarner98]

To answer your question we are a military family and trusted these people. What they said and what was on paper was different. He said, "it was just legalities" We were stuck between a rock & hard place to find a place to live coming from CA....Anyway, I did some investigatin today and apparently this property was damaged during Hurrican Isabelle in 2003.. They obtained the proper permits to fix the place, but was never inspected. It explains the issues... Also a sunroom was added on but never had a permit. The city building inspector is now coming out.....

[Jeff Corpuz]

Do you still want to live in this property? That's the first question you must
address and then you can figure out the proper way to proceed.

Quite frankly, I don't see why you would want to stay in this property, from
what you have described to us, so something to consider would be to let
the owner know that the property is in horrid condition, practically unliveable
and let them know that you are wanting to be released from the contract,
and cut your losses...

[Hwarner98]

I want my 7k back!!!! It is all I have!!!

[Jeff Corpuz]

What does your contract say? If it says NON-REFUNDABLE, then it'll be a bit tough to get
your money back, unless you take it to court.

Explain your situation, clearly to the owner, let them know about the property, it's condition, etc,
and ask if he'll give you your money back or fix the property.

If he/she is unresponsive, and you want your money back, there's no other choice but to consult
with an attorney and/or take it to court.

[WendyPatton]

Well, to get your $7k back you can stop paying the rent. This will get you an eviction notice and you will probably have to go to court, but I don't know many judges who would look at this situation and make you pay the back rent. More importantly, get yourself some legal advice. If you can't afford consultations then look to prepaid legal. If you want more information on this then send me a private message.

[tatertot]

Hwarner, almost always when you buy with a lease option, the buyer (that's you) is responsible for repairs.  Check your contract. If it says you are responsible for repairs, then it does no good to complain to the seller about things that don't work. You are a buyer, not a tenant.

I suspect that your 2 options are to repair the house yourself or else walk away from your $7,000. Read your contract. If you can't understand the contract, hire a lawyer to explain it to you.

If you lose $7,000 on this deal at least learn a lesson. Never sign a contract without understanding what it says. What the other party "says" does not count. What counts is what is on the paper that you signed.

Never make a big purchase without doing research: a refrigerator, a car, a HOUSE. Check it out before buying. That means compare prices on houses, check out the neighborhood carefully, and have the house inspected before you buy. What is normal is to sign a purchase agreement that gives you a week or two to have the house inspected and to either approve or disapprove the inspection. That ties up the house so you don't lose it, and gives you an out if it turns out to be a piece of junk.

You are a military family so you have access to a free lawyer. It was your choice to not get advice.

Seriously, my suggestion is to now take your contract to a lawyer and get it explained to you. Then, get 3-4 estimates on repairing the house. It might not be as much money as you fear.  Then, what I'd do would be to suggest to the seller that he deduct the cost of the repairs from the purchase price and give you a year's extension before you have to pay for the house. That will give you time to make the repairs and get financing, and he would certainly prefer that to a lawsuit.

You must like the house, or you wouldn't have bought it in the first place. Look at all your options before you jump blindly once again. Think things through before you act.

[BLL]

If you can't afford an attorney, you can also contact the Attorney General for your state and speak to someone in the consumer protection division.

[herbster]

tater, I can't agree with your first sentence. A Lease Option is a Rental with an Option to Purchase. Having the t/b pay for all repairs wouldn't fly with any Judge. Read your landlord tenant laws. On my LO's I try to make them responcible for the first hundred or so and anything the t/b breaks. Herbster

[jac1mill]

Does anyone here know if lease options are ok to do in Texas yet?

[herbster]

jac, These people know how, contact them. www.leasingtobuy.com.
I think Jeff(above) has a piece in his course also. Herbster

[g whiz]

 Get all your paperwork together when you signed for the house. Look for the property disclosure form. In Ohio it's a mandatory document, that must be signed by the seller and buyer. The previous homeowner has to disclose all the know faults with the property. If they did pull permits in 03' or whatever then they should have disclosed that the home was in the hurricane. This may provide you an out of your contract and a refund of your money. In most Lease options, you are not responsible for major damage to the property such as roofs, foundations, furnaces etc... but just the minor *(< $200) repairs. Tell the seller that you would love to purchase the property as soon as they fix all the ailments and get it to pass inspection. If they are uncooperative you are in for a legal battle, that you will prob. win but it will cost you time and money. Try to get the seller to use his insurance if possible to fix or renegogiate the sales price... Good luck