Be very careful when working with a lease purchase agreement. A lease purchase agreement is when you and the seller agree to terms that often include a lump sum in the beginning of the contract or at a certain period down the road. Make sure you get an attorney to go over the contract or that you are working with a knowledgeable Realtor. You don't want to give someone enough money to keep their home from foreclosure only to be told down the road that your contract was not valid. Or, worst case scenario, the seller still owns the house, he goes into foreclosure and you end up homeless. Also if you live in an area where prices are still falling you could end up in three years or whenever the term of the agreement stiupulateswith a property that is upside down in mortgage. Be careful. Be smart. Do you homework before you sign a contract and fully understand the arrangement you are signing. There are a few variations on this type of agreement.