Where will I go after my home sells? Where will I live?

In the middle Tennessee area, the rental market, especially for single family homes, is strong. There are a lot of out-of-town landlors and investors who have properties that have been vacant for months. The availability of vacant houses in your immediate neighborhood is probably high right now. Your new rent payment may actually be lower than your mortgage payment. The landlord may require a larger than normal deposit and this is where cash is important. While you are going thru your short sale, you need to be saving as much money as possible. Even with mortgage lates on your credit report and a lower credit score, there will be landlords who will rent to you with the larger cash deposit.

Another good option to consider is a rent-to-own or lease-purchase property. In this scenario, nice single family homes are available to be rented or leased first, normally for a period of 12-24 months. A portion of monthly rent is credited to the buyer towards the purchase of the home. For example, if the rent is $1200 per month, $200 may be credited to the buyer each month towards the purchase. The down payment or deposit is normally larger on a lease-purchase than on a simple rental but this deposit also goes towards the purchase price. At the end of the lease period, the buyer purchases the home from the seller. The down payment is already in place from the deposit and the monthly credit. During this time period, the renter should be working on repairing their credit so that they can be approved for a mortgage at the end of the lease. This can prove to be a fast way back to homeownership following a short sale.