Are Rent to Own and Lease Purchases a good option?

With lending as it is these days and people finding it harder to qualify for loans, I get this question all the time. The short answer is YES and there is a big BUT involved. while this can be a great option to get into a home, it can come with a big risk which includes losing the money you put down. I do not want to scare people off from entering into a Lease Purchase or a Rent to Own, I just want to explain how you need to cover yourself. Even though I am a Realtor that is not why I am saying this. First thing is get a Realtor, they can research to see if the property is distressed, the worst thing that can happen is you put your money down, make your payments and then get a knock on the door from the Sheriff delivering a foreclosure notice. This can be avoided easily with the proper contract. You can negotiate that you make the payment to the mortgage company and the difference to the seller. This protects you from the payments not being made. During the contract negotiations be sure to request a copy of the current mortgage statement. Request a copy of the current tax bill receipt of payment. Request a current copy of the homeowners insurance policy. These may seem like intrusive items to be asking for but keep in mind you are spending your hard earned dollars on this home. This is just another reason you should be using an experienced Realtor in the Rent to Own and Lease Purchase programs, keep in mind to them it is business so they would have no problem asking the tough questions of the seller. If your Agent is not comfortable asking these hard questions and getting the required documentation, I say change Agents before you end up losing your hard earned dollars. I hope this helps and feel free to ask any questions.