I am purchasing a house on contract. I put $10,000 down. I pay property taxes and insurance on the home. I have been living there for three years and the contract will be up in April 2013. I would like to walk away from this contract. Is it possible?
Country relating to Question: United States
State (if USA): Indiana
Thank you for your question. Be sure to go ahead and bookmark www.nateanswers.com for future questions.Is it a rent-to-own contract or a straight-up sale where the seller is financing your purchase by letting you make payments?
Seller is financing.
If you walk away, he would be able to foreclose and sell the home. You would then be liable for any deficiency between the sale and whatever is left and owed on the house. How much that would be, of course, is unknown until the house sells.Please remember to only rate my answer when you are 100% satisfied. IF you feel the need to rate "Poor Service" or "Bad Service", please stop and reply to me via the REPLY TO EXPERT button with the issue you have. I am not paid unless I get a rating of 3 to 5 Stars/Smiley Faces. If I have helped you with your question, please give me an appropriate rating so that I get credit for helping you. Thank you, Nate
Are you saying I would be responsible until April 2013 , or until the house sells, which could be years.
You wouldn't be responsible for anything until he sells it. If you want to walk away, then there really is no downside if you realize that eventually you'll owe the difference between what it sells with and what you owe between now and April, 2013.
Over 8 years of legal practice.
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