Rent with option to buy instead of mortgage

[Jacob G.]

In order to get around the forclosure process in judicial states - could i buy the house at a reduced house from the person that wants the mortgage and then rent back to them with an option to buy at a fixed rate? or a changing sales price as per the amortization table?

[Joe Villeneuve]

Let's look at this from another perspective.  If the person you are dealing with, is getting foreclosed on, it means they couldn't make the mortgage payments.  Since you are doing this to make money...cash flow...you will be renting the property for higher than the new mortgage payment, plus taxes, insurance, etc...and your cash flow.  In other words, the rent to you will probably be higher than the mortgage payment not being made now.

That said, what makes you think the current owner (to be tenant) will be able to make the rent payments to you?