Quote:
Originally Posted by SleazyDream
i'd have to get the bank records so I'll approximate here - he paid about $500 a month and I paid about $150 a month on the mortgage - mine was less due to my down payment. he paid me and i paid the bank never missing a payment to the bank - EVER - till i went bankrupt - including the 5 months he missed (which happened to be the roughest months for money of my life)
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First of all, you might call it a rent to own but that is not what you two did. You were partners. He wasn't renting anything, and he was only going to be a part owner.
You two partnered on a purchase of investment land. Your contribution was:
- get a loan with the bank
- put down down payment needed to get loan
- make monthly payments
you took the risk of going default and jeapordizing your credit. If you hadn't gone bankrupt but was still in a bad financial position and he defaulted on his payments, then the bank would have foreclosed on you and ruined your credit because he didn't keep his end of the deal. It didnt turn out that way exactly, but that was a risk you were taking since you put it in your name and trusted him to make his share of the payments.
His contribution:
- make monthly payments.
He either didn't want to be on the loan, didn't want to get the financing in his name or couldn't get a loan. Either way you took the risk of getting the mortgage in your name and he new the risks if something happened to you financially.
Prior to you filing bankrupcy it seems like he should have been able to work out a deal with the bank. You had 100K piece of property that you only owed what 60K? on. He should have had the option to either pay it off or set up a new mortgage with the bank. If you paid in 30K orginally and he paid about 15K over time, he would have basically bought a 100K piece of property for 75K (60K balance and 15K he already spent).
Bottom line, if you couldn't continue on it with it he had a choice to either step up and finance it himself or walk away.
Although it sounds like he not only did neither but he defaulted on the $500 a month payments a couple months before you lost the property.
I don't see any way which you would have screwed him or owed him an apology. He knew the risks, he had options to fix it, and he stopped sending you payments. Sounds like he owes you an apology.
