Do people to "rent-to-own" for houses? What does it mean? Please help.

I am desperately trying to sell my house and I got an informal offer to "rent-to-own".

Have you ever heard of this for a house? I know it is hard to get a home loan these days and I assume that is the major attraction for the person making the offer, but how would it work?

Do any of you have any idea? Do they just pay me "mortgage + x amount"? It couldn't be just the mortgage amount because what about all the capital I've put in?

Thanks for the advice/info/help everyone.

Lease for a year or two with the option to buy thereafter.

Another way of doing this is a wraparound mortgage. You deed the property to the buyer, they sign a mortgage to you, they pay you, and you pay the mortgage company. Probably violates your lender's due on sale provision in the mortgage document.

Or...it could be a contract for deed. Buyer signs a note and a contract agreement with you. When they pay you in full, they get the deed. Nothing recorded. IRS views this as a transfer of ownership, with all attendant rights and obligations of ownership. Default by buyer results in eviction, rather than foreclosure. Interesting, unorthodox yet completely legal and feasible alternative.