My sister and her husband sold their first house on a Rent-to-Own basis. In their case hey held the mortgage and the people who were going to purchase it paid them on a monthly basis. It was all handled through a lawyer. The agreement was that if they missed two payments then the house would go back to my sister and her husband. It was much cheaper for the people to buy the house this way. The people buying the house were relatives of my brother-in-law. They went through a lawyer and has all the proper paper work done up because even thought it was family they didn't want to take the chance of getting burned. It all worked out for them which was great.