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 option not only serves those with a nasty adjustable rate problem, but a variety of people who need to get out of a mortgage situation for a variety of reasons. They may be going through a divorce which requires them to divide up the house's equity, they may be facing critical debt problems, they may have a medical situation, or a variety of other circumstances.

If you're a seller considering a rent back house option, talk with a reputable realtor or search the internet for more information about how the option works. You will also need to hire an attorney to look after your best interests and help you get the best possible deal.

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.