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Living in the Land of Opportunity (America) is not always a rosy picture. Three to five years ago, we were all being wooed by banks and lenders to take advantage of low interest adjustable rate mortgages. While these rates seemed too good to be true, they were, well, too good to be true! Now these rates have been climbing, leaving Americans in difficult financial situations and a weak housing market. When options are dropping off rapidly, selling your house and renting it back may be a temporary solution.

Look at your situation carefully when deciding which path to choose. Do you have equity in your home? What is the bare-bottom price you can accept for your home, and does your tax-bill verify this as a fair market value? Can you look at the "big picture" of your financial future and justify saving your credit rating by taking this loss? In some situations, if you have adequate equity in your home, selling at a reduced price will get you needed cash and yet you can stay in your home as a renter.

An investor looking to purchase your home will be interested in a built-in renter, so use this to your advantage in negotiations. If you are willing to rent for one or possibly two years, state your time frame and monthly price. The worst they can say is "no", although it is unlikely that they won't even entertain the idea. The slow housing market affects landlords just as much as it affects homeowners; they are having trouble finding and keeping renters. Knowing that you are attempting to keep your credit record as clean as possible by throwing them this "deal" will show them the value of you as a renter as well. If you were to default on your rent payment, just like with a mortgage payment, the landlord can report that negatively on your credit report.

After all is said and done, every home negotiation is completely different and you may find that it isn't the perfect scenario for you to stay after all. It may be time to re-think your roof and find a more economical place to call home. Moving isn't fun, and leaving a home you love can be heart-breaking, but removing large stresses from your life will give you renewed vigor to earn a home like that back again. Keeping that "big picture" in mind can turn even the worst situation into an "American Dream" for a better future.

Learn more about this author, C.A. Watters.
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