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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.

Fortunately, there is another option which is called "rent back house" option. The working of rent back idea is pretty simple: you negotiate the agreement with the buyer, once you sell your house, to rent the house from them and the buyer is ready to sell the house back to you, an additional arrangement known as "sell and buy back".

Rent back house agreements are, to an extent, "win-win" situations. The seller gets to stay in their house, which is comforting as well as non-disruptive. The buyer not only acquires real estate, they get a steady income stream, and a motivated buyer (presumably) once their economic situation improves.

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.

Consult with a realtor or research "homes on sale and rent back" if you are considering investing in this. This is a "buyer beware" situation if you decide to pursue this. Have an attorney involved and thoroughly check the buyer's background to see if they are reputable before proceeding any further.

An increasing number of homeowners are in dire straits in the wake of the sub-prime mortgage debacle. 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 or consult with a realtor yourself. Be sure you also have an attorney involved and that you thoroughly check out the buyer to determine if they are reputable.