[Woooohoooo]

...foreclosures? It seems to me that if banks would create a rent-to-own option on foreclosed homes (with a deposit of course), they would at least have money coming in and the home occupied. My thought is that many people can't afford a 20% down payment, but they are able to make payments. If the banks agree to allow maybe 75% of the first 3 years of those rent payments to be applied as a down payment, the homes would move. For example, a $150,000 home would run just under $1000/month. If the bank allowed 75% of the first 3 years rent payments, the renter would be able to apply 75% of $36,000 or $27,000 plus their deposit toward the down payment, which would equal 20% down. The bank profits $9,000 over the 3 years which would help to manage the program. If the renter backs out for any reason, the renter would get their 25% back and the bank keeps the remaining 75% as rent payments. But the longer the renter stays, the more equity they build up and the greater their investment and commitment. The banks might otherwise sit on these properties for years costing them thousands to maintain and manage. Seems like a win-win to me. Thoughts?It doesn't seem that this question is very well understood. Let me try to clarify my point based on the first few answers.1.) Even when you "purchase" a home, you are essentially "renting" until the mortgage is paid off. If you don't believe me, stop making your mortgage payment. You will be evicted exactly like a renter and all that you've paid is lost. And in that sense, the banks already have the headaches of landlord tenant relations, and contrary to what you say, they are already servicing the real estate and they will be servicing and managing it a lot more after a foreclosure. They just coast as long as the buyer is making the mortgage payments. Not so after a foreclosure.2.) I agree that the banks are owned by investors and the investors want their money back. So how's that been working out for them so far? Not so good. At least this program idea increases the buyers commitment by about $750 every month with the example given. The other $250 goes to the bank and ul

[Rawr!]

The bank foreclosed on my neighbor's house and now he is renting it from them.

[GreenElectricitySaver.com]

They do not want the headaches of landlord tenant relations nor are they equipped to maintain and service the real estate.Just look at how they've handled the mortgage foreclosure paperwork... Let's forget maintenance orders, leases and the like.