Karen,

I list and sell bank-owned homes, and I have NEVER had one that is rent to own. The banks need these homes off of their books, and they are not set up to manage properties. Like the commercial says, "They need their money NOW." Most bank-owned properties are listed through regular real estate agents, just like me, who have experience with REOs (that's the industry lingo for bank-owned--it stands for Real Estate Owned).

Probably not. Foreclosures are owned by financial institutions or the government. They are not in the business of holding and managing residential real estate. They have a mandate to unload those properties permanently. If you're interested in rent-to-own, lease-purchase, or similar arrangements, then you should look at properties that are privately owned. Forget about foreclosures (not privately owned), and forget about short sales (no flexibility). With the whole country on sale right now, there are plenty of bargains in "normal" real estate. If you don't own a home, and you have a job, you should strongly consider trying to buy instead of renting any longer or pursuing a rent-to-own strategy. You're in a buyer's market, mortgage rates are near historic lows, and Uncle Sam is offering plenty of help in the way of government loan programs to help you become a homeowner for little to no money down. The stars will not remain aligned this way indefinitely. If you lock yourself into a lease, home prices or mortgage rates or both could well be higher when you're ready to buy later, and that would mean higher monthly payments and more difficulty qualifying. Down payment requirements could also easily rise over the next year or so. The ability to buy near the bottom of the market for little or no money down is an opportunity that you should not take for granted.