i want to short sale

Hi bhay,

If your friend buys the house in short sale, he will be the legal owner of the property. In that case, he will have the absolutely authority to rent it to anyone he wants. Thus, I believe it is quite possible for you to rent the house from your friend in future.

It's not about if you want to sell it in a short sale, it is whether the bank will accept it. It's not a cut an dry option the hit to you can be any of the following: a 1099 for the difference of what you owe and what you sold it for. So let's say the bank accepts 20K less than you owe, are you ready to pay taxes on that amount? You many also get a judgment for the difference. Be very cautious when ironing this out as it may hurt you in the end.
As far as your friend renting it to you that's fine but if he is now purchasing this as investment property then he may need to put down as much as 20% depending on his credit score.

agreed...to arrange for a short sale, there's far more homework to do than simply saying "i want to short sale." you'll have to demonstrate to your lender that the property is worth less than what you owe, you'd have to engage a real estate agent to market the home - the bank isn't going to settle for your friend as the only potential buyer, i'm quite sure. they'll have to do an appraisal of their own to satisfy their desire to know current value...lots more to do, too.

and sonja is right on with her citation of a larger down payment requirement for your friend, etc.

yes if your friend take your house then he is the ouwner of this house he is able to take that house for rent.