Hi all, i'm the seller in a rent-to-own contract I entered into with a friend who was getting into the real estate business 2021. He wanted to be the property manager and manage the house until it could be sold again in 7 years for a (presumably) higher price. The deal seemed legit and it was my trustworthy friend, so i agreed to it. He told me he would take care of everything and not to worry.

I signed a "Subject To" Mortgage (it was presented to me as a Wrap - so problem #1). Consequently, my friend as the property manager, found a tenant that was a serial evictee (problem #2) - and apparently did not do a background check when she moved in summer 2022 (because when i looked up her name recently, i found the recent eviction 12/21 in less than one minute).

My friend collected the rent for a few months and looked like everything was going well.

Then he had to have a major operation unexpectedly this year, during which time, the tenant took advantage, stopped paying, and eventually filed for bankruptcy protection. Because the mortgage is still in my name, i had to pay the mortgage for 6 months straight until the tenant could be evicted again or it would hit my credit report. I am still paying the mortgage!! This is on top of what I'm paying my current rent.

I also invested almost 10k into his company from a Roth IRA which he told me would go towards other properties, but instead he used it on My property. (I just found out today.) He told me today that it was his mistake that he didn't tell me but that i couldn't move back into the house because of that deal, something to do with the IRS....

This just happened, i have to get the original paperwork, and see the original contract and if there is a Rescind clause that may get me out of this deal! I let him know i want out and that he broke contract by not paying. If I didn’t pay the mortgage, it would have been in foreclosure by now. Last night i saw an ad he placed listing the property again without telling me!

My friend has been laid up and recovering and wants to continue and find someone else for the house, but I want out of this deal, and want to move back into the house for my primary residence.

This is all extremely recent, and I'm starting to work with an attorney.

Am I out of options with that Subject to Contract? Do I have ANY recourse?

If anyone has suggestions or useful comments, i would appreciate as i continue this journey to get my house back. Thank you!

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I'm the seller in a rent-to-own contract

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