Lease-options: the good, the bad, the ugly

REThink Real Estate

Q: I owned a home for eight years, but borrowed heavily against it, took a subprime loan and recently lost it through foreclosure. My credit is shot from the foreclosure, but I have found another home I would like to buy. The seller will agree to do a lease-option, and I think it sounds like a great way to buy. What are the pros and cons of a lease-option that I should know about? Are there any pitfalls I need to beware of?

A: A lease-option arrangement may present a great opportunity for someone who has just gone through a foreclosure to immediately regain some of the benefits of homeownership.