short sale, then lease-option back considerations

[jba427]

I'm considering doing a short sale on my residence. I owe approx. 425k on it, and it's worth about 300k. I have a friend who is an investor who would buy this property from me in a short sale, and then lease-option back to me at something considerably less than the 425k I currently owe. Aside from the usual lease/option fee stuff, is there anything I need to take into consideration from the mortgage companies side?

The reason I'm considering this route versus a modification, is I declared b-ruptcy less than 2 years ago, so both mortgages have been taken off my credit report. I've been told I can get a mortgage again once 2 years has passed from the b-ruptcy.

My first mortgage is processing my loan modification, however, my second (Wells Fargo), won't even talk to me. I don't want to do a modification on my first, and have the second still sitting out there. I haven't made a payment to WF in over 6 months, and they've never once contacted me.

[Moe Bedard]

This seems all find and dandy, but what if you can't get a mortgage later? The BK will definitely affect your ability and the short sale will also require you to "wait" until you can buy a home again. You will most likely not be able to purchase for 2 years plus after a short sale and that is if your score has raised enough and you have enough down payment.

I assume that when you have to exercise your lease option right, you will have to get new financing and mortgages are going back to plain vanilla 10-20% down type home loans. So, in 2 - 3 years will you have $30-40k to bring to the table to buy back your home and will your credit be good enough? I would say at a minimum if you do go this route, to get a lease option for 3 years plus. 4-5 would be ideal and if you need to or want to exercise the option to purchase early, you can.

You have to do the Ben Franklin here and list the positives and negatives.