Looking to rent a house - how risky is this? (lease to own)?

Question

there are 2 signs in the front yard (a for SALE sign by realator and FOR RENT by owner) we called the owner to see if we could see the house and what the terms of the lease were. he said he was 4 months behind on the mortgage so the lease would be month to month (basically until we were kicked out due to foreclosure) but he said we could work out a lease-to-own option where the rent could go towards the purchase price. we really like the home but are not interested in purchasing it. we are thinking about doing the lease-to-own but unsure how to break out of it. is it easy if after a year or 2 decide we had enough we don't want to purchase you keep the payments as rent?

Answer 1

If he is 4 months behind on his mortgage you'd be nuts to do a rent to own.  They typically cost more and this place will be in the banks hands soon enough (ie any agreement you made with the owner will then be null and void).  I wouldn't even bother renting the place (again, the banks going to foreclose on it soon anyhow) - just go find another place and don't bother with this mess.

Answer 2

This house will be bank owned within a couple of months and you will be in the streets.   It does not matter what you decide in 2 years, you won't be there 3 months.

Look for another place, you will loose your deposit on this one and be looking again in a couple of months anyway.

Answer 3

This could work as a rental.  The owner signed a paper that said "Deed of Trust and Assignment of Rent" when she got the loan.  It means that, if she doesn't make her mortgage payment, the bank has the right to collect the monthly rent.  It is very fair.  It's not ok for the landlord to pocket your rent and not pay the mortgage company something. Very scammy.

I would run for the hills.