You can't rent-to-own a bank-owned property. When banks foreclose on a home, it is considered a real estate owned (REO) property. Banks want to unload these for as much as they can to recoup foreclosure losses and won't rent them in any capacity.

Is it legal to collect rent on a house in foreclosure?

A landlord can collect rent on a property going into foreclosure, but once you've actually lost the house, you must not collect a penny's rent from your former tenants. ... You also owe them their last month's rent and security deposit, if they paid those to you when they moved in.

What does a bank do with a foreclosed house?

With foreclosure, a bank takes possession of the house, then resells it at a mortgage auction to the highest bidder. If a bank receives an offer that is close to market value, it may be more likely to accept that offer instead of foreclosing.