I want to buy a house the owner has a second mortgage on it?

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We have been renting to own a house. We have been saving up for the down payment. We have been rent to own for over 2 years. The owners have been using all of the rent to make house payments. They told us we will only owe the balance of the loan. We have found out that the owners have recently taken out a loan using the house (is this a second mortgage?). They told us that it won't affect what we buy the home for (they verbally quoted a price). How can they sell us the house if they borrow money against it to buy another home? How do we protect ourselves without getting robbed by lawyers? We have never done anything like this before so we are blind to what can happen to us. I read if they default on the loan that we could loose the home even if we buy it from them. Also, we heard they had some back tax problems from something else.

I want to buy a house the owner has a second mortgage on it?

You will not be effected by tax problems with "something else". Taxes do not jump properties.

However, they have to be able to pay off ALL liens on the house, including both loans, in order to sell you the house.

It does not matter if they quoted you less, the bank will not let them sell it to you for less then what is owed.

I want to buy a house the owner has a second mortgage on it?

Do not worry about sellers mortgage or loan .

You suppose to have a contract of sale signed when you moved into the house, specifying that it is rent to buy and the amount of the rent goes thourds the down payment and you need only a balance for the agreed price, not whatever the seller owns to the Bank.

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I want to buy a house the owner has a second mortgage on it?

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