Q: I am a seller contract Lease to Purchase. Doesn't the buyers monthly payments go to the mortgage payment?
Buyer thinks that her monthly payments only go towards the principle balance. She stated that she should have credit towards all the payments she's made. All the payments she made go to the mortgage.The lawyers have seen the paperwork and the mortgage payments and that's whats on the contract as a monthly mortgage payment. If she doesn't pay off the house by April her down payment is non-refundable. With this type of contract doesn't the monthly payment go towards the whole mortgage?
Side note, I pay the insurance on the home.
A: Buyer has assumed that there is a default provision that the payments go towards the principle balance of the mortgage. Seller has indicated that the monthly payments go towards the mortgage payments. The language of the contract will determine the issue. The monthly payment being equal to the monthly mortgage payment provides no insight to the amount for which the property will be sold.
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