Rent to Own Question

[dplummer]

What protection does the renter (purchaser) have if the landlord (seller) defaults on the mortgage prior to the renter exercising his/her option to purchase?

 

[Thomas Beyer]

The courts eventually, but the mortgage holder will see the purchase /RTO contract on title and will work with renter/future purchaser ( also referred to as tenant-buyer or TB) to sell property to her/him. The TB has a valid contract regardless of mortgage default. If all things fail it will head to court for judge to decide, but most lenders would be happy to work with TB so she/he can acquire the house, possibly for less than originally agreed. But, with potentially three quarreling parties ( the bank, the current owner and the TB ) it is not easy to predict the exact outcome as circumstances will vary.