Can anybody explain to me how this works? I was just browsing through the internet looking at mortgage options and I stumbled across a website talking about houses that are "Rent to Own."

There are various methods, one is of course the standard contract for deed. You pay a down payment, and sign a contract to pay a certain amount for so many years and at the end they sign the deed over to the buyer.

But most true rent to own, basically you pay a deposit and when you pay your rent a portion goes toward buying the house, normally you will be paying more than standard rent.

In most, you pay higher prices, higher interest and the seller expets you to defaut and they keep all the extra money.