[Mntwolves1]

Hello,

We recently signed a contract to rent to own. We have been in our house for 3 months. Our landlord sent us letter stating that his lender had raised his mortgage payment and that the property was soon to go into foreclosure. Our rent to own contract does not end for another 21 months.

He gave us three options:
1. We move out immediately and he refunds our security deposit.
2. We continue to rent until he is able to sell the house at which time he would refund our deposit.
3. We buy the house from him.

Option 3 will not work as the payments would be too high. Do we have a legal right to stay in the home until the contract is up even if it goes into foreclosure? Or does the foreclosure supercede the agreement?

I live in the state of Minnesota.

Thanks

[Fr_Chuck]

The home is not currently in foreclosure from what it sounds like, only about to go, it normally takes several months for a foreclosure to happen.
You can continue to rent ( paying your rent) until the foreclosure officially happens, once it does foreclose you will have to move.
If he sells it before it forecloses, then if you have a written lease, the new owner is obligated to honor that lease.