Rent-to-own offers the opportunity for homeownership to those with low savings and bad credit, but the path is costly and many don't make it.
Typical rent-to-own deals are a renter's path to poverty. For instance, renting furniture often requires the renter to pay many times the actual value of the item, and the only reason anyone enters into these agreements is because they have no savings and no better alternative. This kind of imbalance in the relationship between renter and landlord is ripe for abuse (or profit). The lure of a rent-to-own deal is the ability to enjoy the house while saving money to buy it. It has the potential to be a major path toward home ownership, assuming the path isn't so costly that nobody can complete the journey. In Monday's post, REO-to-rental companies helped many former owners stay in their[READ MORE]