Full of Thought
New Member
- Jurisdiction
- Louisiana
A bit of background: my mother (lessor) entered into a contract of lease and agreement to purchase in 2005 with her neighbor (lessee). The lessee was given power of attorney on all matters concerning the property including mortgage, insurance, taxes, sales documents, and proceeds. A term was set with the understanding that the lessee "shall continue to actively and in good faith pursue adequate financing to purchase the property within that period of time". This term expired in 2015.
Over the last 6 years, the lessee has paid half of the mortgage payments and let the house fall into disrepair. He has received a forbearance plan from the mortgage company. We have received multiple complaints from the city and neighbors about the state of the property (lawn/weeds overgrown, junk vehicles in the driveway, and vehicles blocking the sidewalk). He is also currently late on all utility bills.
My mother is concerned with what might happen with the house/her credit if the lessee cannot afford to finance it and is frustrated with the fines from the city and utility companies. She feels trapped in this agreement and wants to get out of it. But there is a problem.
The lessee claims to have invested an unknown amount of money into the property, replacing the roof, installing new appliances, flooring, cabinets, etc. His intent has gone back and forth between fixing the property up to sell it and financing a loan to buy it. This complication is exacerbated by a clause in the contract: "It is agreed that for any reason this contract goes into default and converts back to Lessor, all payments and monies spent including down payment, insurance, repairs, improvements, taxes, and maintenance will be refunded to Lessee by Lessor. In the event of default of this Agreement by Lessor, Lessor shall be liable for all attorney fees and court cost incurred in the enforcement of this agreement."
We've talked to a lawyer who says he wants no part in the case due to it being too convoluted. He was on board with evicting the lessee for a $2,500 charge, but he quickly changed his mind when finding out about the money invested in the property. He said this will be a nightmare and it is not worth pursuing. It was recommended that my mother should foreclose on the property. The attorney argued that the contract was not filed in court (notarized in a realtor's office) and that it should be considered null and void at this point. Still, he insisted that with the money invested by the lessee, foreclosure was a better option than eviction.
We don't know what to do or where to go from here. Any advice would be very much appreciated.
Over the last 6 years, the lessee has paid half of the mortgage payments and let the house fall into disrepair. He has received a forbearance plan from the mortgage company. We have received multiple complaints from the city and neighbors about the state of the property (lawn/weeds overgrown, junk vehicles in the driveway, and vehicles blocking the sidewalk). He is also currently late on all utility bills.
My mother is concerned with what might happen with the house/her credit if the lessee cannot afford to finance it and is frustrated with the fines from the city and utility companies. She feels trapped in this agreement and wants to get out of it. But there is a problem.
The lessee claims to have invested an unknown amount of money into the property, replacing the roof, installing new appliances, flooring, cabinets, etc. His intent has gone back and forth between fixing the property up to sell it and financing a loan to buy it. This complication is exacerbated by a clause in the contract: "It is agreed that for any reason this contract goes into default and converts back to Lessor, all payments and monies spent including down payment, insurance, repairs, improvements, taxes, and maintenance will be refunded to Lessee by Lessor. In the event of default of this Agreement by Lessor, Lessor shall be liable for all attorney fees and court cost incurred in the enforcement of this agreement."
We've talked to a lawyer who says he wants no part in the case due to it being too convoluted. He was on board with evicting the lessee for a $2,500 charge, but he quickly changed his mind when finding out about the money invested in the property. He said this will be a nightmare and it is not worth pursuing. It was recommended that my mother should foreclose on the property. The attorney argued that the contract was not filed in court (notarized in a realtor's office) and that it should be considered null and void at this point. Still, he insisted that with the money invested by the lessee, foreclosure was a better option than eviction.
We don't know what to do or where to go from here. Any advice would be very much appreciated.
