Can investors just decide not to pay for your home anymore?
Hopefully my question is worded correctly. My husband and I moved out of our primary home in 2007. At the time, we were living in a 3 bedroom/2 bath house and had 3 kids. I was expecting twins at the time. We needed a bigger house. A company that was taking over many homes at that time in our neighborhood approached us to find out if we were interested in having them take over our payments and they would rent the property out as well as take over the 2nd mortgage. Of course, hindsight is 20/20 and at the time it seemed like a great idea. The company let us know that they would buy the home after 2 years if they had not been able to sell it. This is a reputable company. Since July of 2007, the company has made the mortgage payments and the 2nd mortgage payment on time every month. We got a letter yesterday that said in so many words “we are sure you are aware of the current economy and the state of the housing market, therefore we regret to inform you that we will no longer be able to satisfy our end of the deal, blah blah, blah…. please be advised that there are tenants there and they have been there for 2 years….we have filed a deed in your name in your county and please contact the mortgage holder to advise them of your address for any future statements for payment”. We now live in another house that we had built. We could make the other mortgage payment in the event there are people who don’t pay like they are supposed to or if they decide to leave, but it would be a squeeze, and I do guess if they want to stay in the house and pay on time, then it wont be an issue, but my question is, CAN THE OTHER COMPANY DO THIS? We did have a closing in which we had to pay $ 1000 for the repairs. I am confused as to how they can just do this with no recourse because the economy is bad, Yes I do understand it is bad, but is this legal for them to do this? If you know more about this or can advise me on what I shoul do, I would greatly appreciate it.