Can You Rent to Own a Foreclosure Property?
Can you rent to own a foreclosed home?
The short answer is no. A bank will not rent to own a home they have already foreclosed on. A homeowner facing foreclosure might, but in most instances rent to own opportunities for foreclosed homes are scams. The homeowner will likely lose the property regardless and you will lose the chance to purchase the home.
It’s important to know about common scams and prevention methods prior to beginning your rent to own journey. Rent to own can be a great experience if you are prepared for people trying to manipulate it.
Can I rent to own a foreclosed home from the bank?
Banks do not rent to own foreclosed home. If they did, it would be a very rare occurrence.
Rent to own is not in the bank’s best interest. The banks have properties they are trying to get off their books. They assign them to an asset manager, which then assigns them to realtors to sell. The process is very strict, in terms of how they sell it. Usually, it’s a cash sale.
Should a buyer rent to own a pre-foreclosure?
If a house is in foreclosure, but it’s not owned by the bank yet, you COULD rent to own it, but you wouldn’t want to.
The purpose of rent to own is having the ability to purchase the home after the lease. However, if a home is in foreclosure, the people that owned the home may not have the ability to sell it to you. Additionally, the bank may take the property back before the end of your lease.
Homeowners putting their home up for a rent to own contract while the home is in foreclosure is actually a common rent to own scam. Some scammers purchase the deed to properties that are in foreclosure, put them up for a rent to own agreement to collect the option fee, knowing that they won’t have the ability to transfer the title at the end of the lease. Be wary of pre-foreclosure rent to own listings.