Many homeowners were lured into buying by adjustable rate mortgages which allowed them to purchase a home with a payment they could afford, but also one which could go up at any time. As interest rates rise, more and more homeowners are finding themselves in over their heads and unable to pay the new, higher mortgage payments. The options open to them are limited and not very attractive: they can take bankruptcy, they can default on their mortgage, or they can just give up and let the bank take the house back.

Thank goodness there is another way. You can choose the "rent back house" option. This is how it works. When you sell your house get the buyer to agree to rent it back to you. He may even let you buy the house back eventually. This is called "sell and buy back". Either plan may work well for you.

With a rent back house agreement, everyone wins. The seller is able to remain living in the residence and doesn't have to open his life to the disruption of moving. The buyer adds a property to his list of assets, receives the monthly income of rent payments, and has a ready-made motivated buyer who will repurchase the property when they can.

This alternative can not only offer help in coping with an unpleasant adjustable rate situation, but can also aid those who must get out from under a mortgage for a number of reasons. Perhaps a marital breakup necessitates their splitting up the home's equity. Or, there may be a problem involving serious debts, there may be health related difficulties, etc.

Do some research on the web for "rent back house" options or speak to a realtor if you're a seller in this situation. You must speak to an attorney for transactions of this nature to ensure your best interests are protected and to assist you to get the best possible deal you can.

Before investing in this option, you should consult with a realtor or try searching under "homes on sale and rent back". This is a very critical situation and you have to be sure that the buyer has a good reputation. An attorney involved will save you the headache.

An increasing number of homeowners are suffering in the sub-prime mortgage debacle. They may declare bankruptcy, go into default, or walk away and let the bank repossess the house. There is another way. You can choose the "rent back house" option. When you sell your house, get the buyer to agree to rent it back to you. He may even let you buy the house back eventually. This is called "sell and buy back". If you are considering investing in this option, search under "homes on sale and rent back". Be sure you to get an attorney and check out the buyer to determine if they are reputable.