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If you've spiralled into a terrifying financial situation, take heart, because you're not alone. In today's volatile housing and job market, many people across the nation are facing repossession and bankruptcy due to no fault of their own. You may feel as though there is no way out of your situation, but there is an option you probably haven't thought of - selling your house and renting it back.

Clare Wilson, a single mom, went through this exact situation two years ago. After rheumatoid arthritis left her disabled, she could no longer work. She received a small sum of money from disability benefits each month, but this was not enough to pay her mortgage, let alone to feed herself and care for her two teenage sons.

Clare felt trapped and hopeless after wrestling with huge bills and debts for three years. She was to the point where she thought she would have to sell the home she had called hers for thirty years. She'd researched rental prices in the area and found that she couldn't afford them, so she resigned herself to moving with her two sons into a relative's home. She could find no homes for sale that she could conceivably purchase, and she was almost out of hope.

Fortunately at the time that her home was coming under the foreclosure process a friend of Clare gave her a call to tell her that she had figured out how to sell and rent back her home. This news excited Clare and after she did some inquiring she realized that this was something that she could do, and she wouldn't have to end up losing her home in the process. The fear of having the for sale sign up in front of her house was alleviated.

Here is how to follow the process of sell and rent back. Clare sold her home to a firm that works in the repossession and foreclosure market, then she sat down with one of their representatives to determine the likelihood of renting back at an affordable rate for her. She worked with them to find a payment she could afford while still being able to provide for the needs of her home, but not too low so that she would have a long time before she got her house back. The properties to rent back, just like Clare's, will usually not ever go through a change of hands.

Each monthly payment was used to build up equity in the house. She would have her choice of either paying the monthly rent for a long period of time, until the home was completely paid for, or paying just until her financial situation was improved enough to buy back the house. She will have to pay the rent to live there during that time which could well be lower than the going rate in her neighborhood. Either way, the house was hers to live in for as long as she wanted, and would soon become hers on paper, if she wanted to. That way the she managed to sell the property to rent back without ever having to move out of the house. And her neighbours were none the wiser, let alone any one else.