Missouri Couple Sues "Contract For Deed" Operator For Allowing Home To Fall Into Foreclosure

In Republic, Missouri, the Springfield News Leader reports:

• A Republic couple who made monthly payments but nearly lost their home is suing Greenleaf Cos., accusing the Springfield company of breach of contract and questionable business practices.

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• In the lawsuit, [David and Susan] Foster say they bought a house from Greenleaf in August 2007 for about $252,000 on a contract for deed. The house, located [...] in Republic, belongs to Talya Finn of Marionville.

• As the middleman, Greenleaf was expected to collect money from the Fosters and pay Finn enough to cover her mortgage payments. But, without enough income, Greenleaf officials have said the company could not pay Finn and other investors.

• In their petition, the Fosters say they made all the payments as agreed on time but had their house threatened with foreclosure when Greenleaf failed to ensure the loan on the house was properly paid. The Fosters say foreclosure proceedings were initiated but canceled when Greenleaf "made arrangements to remedy the deficiency."

Reportedly, the Fosters are seeking punitive damages of at least $100,000 and a release from their contract.

For more, see Couple takes Greenleaf to court (Lawsuit questions company's real estate program).

For Greenleaf's side of the story, see Greenleaf partner describes homeowner lawsuit as ‘frivolous’ (Greenleaf partner Scott Dasal said the story and other recent Greenleaf stories have hurt his business, because more and more Greenleaf clients began to question whether they should pay. “They have come out of the woodwork, and people don’t want to pay,” he said).

For story update (12-30-08), see Republic couple drops lawsuit against Greenleaf:

• [D]avid and Susan Foster of Republic has filed a voluntary dismissal with prejudice, which would allow them to sue the defendants in the future. [...] Foreclosure proceedings were initiated, but they were cancelled when Greenleaf “made arrangements to remedy the deficiency,” the Fosters said.

Go here for other "contract for deed" problems involving Greenleaf and The Real Estate Co.

For more on problems with "Contract for Deed," "Rent To Own", and "Lease / Option" real estate deals, go here and go here. rent to own lease purchase option scams yellowstone Arkansas