Agent

Using rent payments to rebuild your credit

REThink Real Estate

Q: How can I set up a lease-to-own on a three-unit property and have it count on my credit report? --Bruce T. A: I'm delighted that you asked this question, for several reasons. There are many, many folks out there who are trying to recover their finances and their credit in the wake of a foreclosure, job loss or other recession-era money trauma. And, though the market has indeed picked up for sellers, there are still many who are struggling to get their homes sold at or near the price they need. A lease-to-own arrangement, more formally known as a lease-option, can be a smart, win-win strategy for both these types of people. If you have lost a home to foreclosure or short sale, or just have had a rough few years, financially speaking, you may be blocked from obtaining a bank- or credit union-issued mortgage loan for a set period of time, but a seller might still agree to a lease-option. The challenge is that most individual landlords don't report payments to the credit bur...