No one really wants to give you the real answer. You do not rent to own a foreclosed home, you only buy them with a pre qualified letter for a loan or cash. NOW the buyer may rent it our but not a good deal. Realtors can no longer handle Option Option to buy, how different do you think Rent to own is. It is still one way where the Owner takes advantage of the renter.
The best thing to do is fine a respectable Realtor that will find you a home that is for Sale and for Rent by a respectable seller/renter that will not take a large sum or money or larger monthly sum of money from you.
To many bad stories out there. Best way to get into the home is to determine your comfort payment level for a home. If you're paying $1000 in rent now and your estimated mortgage payment is $1400. Start putting the extra $400 into savings now. Budget and live like you buying. Patience and perserverance and pay yourself first (the bank of ME). Good Luck!
It may be a good buy, but there is so much that can go wrong. You could be on time, but it could also be your furniture on the curb through no fault of your own.
Maybe the seller will even give you an lease option to purchase so you aren't throwing away your money and going towards a contract with them as they will most likely sell it down the road and you have the first right of refusal on the property then as well.
Best of luck.
Check out HUD homes and REOTrans houses for information
For a rent-to-own, you're renting from the owner, with an option or agreement to purchase the home at some point in the future. The person needs to own the home, and be willing to sell to you, Unlike some of the other comments below, I do like rent-to-own. In the right circumstances, for the right people, it can be a way to buy a home when otherwise you can't. Having said that, there are some abuses and, even in the best of circumstances, a large number of rent-to-own transactions never make it to purchase.
An additional problem in Texas, as Bruce correctly notes, is that they're virtually impossible to do in Texas.
Meanwhile, a foreclosed home is one that the bank now owns. Even in states where rent-to-owns are popular, banks don't do it. If a bank owns a property, it wants to sell it. And it wants to do it with a minimum of hassle. That's why they list the property, and that's why they sell the property in "as is" condition. The last thing they want is a tenant with shaky credit who may or may not be willing or able to purchase in a year or two.
Find a good mortgage broker to see what you'd qualify for today, and what steps you need to take to clean up your credit to qualify for something in a year or two. Then interview Realtors and find a good, creative one. Though rent-to-own isn't an option, you still need to find one who is willing to work with you to explore all legal options.