How to Rent to Own a Foreclosed Home

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There are solid deals that can be made by negotiating the purchase of a foreclosed home. One course that you can take in regard to owning a foreclosed home is to contract for a rent-to-own option. There are specific steps that you take in order to rent to own foreclosed real estate.

Contact the mortgage home lender that has available foreclosed properties.

Schedule a meeting with a representative of the lender to discuss available foreclosed properties that are available for sale.

Organize documentation regarding your financial status in advance of the meeting with the lender. This includes documentation pertaining to your income and your available liquid assets (cash and investments that can be converted into cash quickly).

Present documentation in support of your financial situation to the representative of the lender during your meeting. The objective of this is to demonstrate that you are capable of satisfying the terms and conditions of a lease-purchase or rent-to-own agreement to buy a foreclosed property from the home mortgage lender.

Tell the lender how you will meet the obligations associated with a rent-to-own agreement to purchase a foreclosed property from that lender.

Negotiate the specific terms of a rent-to-own agreement with the lender that has ownership and possession of the foreclosed property.

Make all rental payments due and owing under the agreement in a timely manner.

Negotiate your own home mortgage loan to pay the balance due and owing on the rent-to-own contract at least 90 days prior to the due date for the balloon payment under the terms of the agreement.

Pay the balance due and obtain full title to the real estate.


  • How to Buy Foreclosed Real Estate: For a Fraction of Its Valu, Theodore J Dallow & Don Ayer, 2008
  • Rent to Own: Use Your Rent Money to Get Started Owning Real Estate, Robert Irwin, 2007


About the Author

Mike Broemmel began writing in 1982. He is an author/lecturer with two novels on the market internationally, "The Shadow Cast" and "The Miller Moth." Broemmel served on the staff of the White House Office of Media Relations. He holds a Bachelor of Arts in journalism and political science from Benedictine College and a Juris Doctorate from Washburn University. He also attended Brunel University, London.