Successful Short Sale Leaseback/Buyback?

[SoulMaster]

Has anyone heard of a successfully complete Short Sale Lease Back or Short Sale Buy Back?

As I understand it, the SSLB works like this:

• Joe owes 250,000 on mortgage
• House is worth 100,000
• Joe Shortsells house to non-profit (bank waives the arms-length)
• non-profit leases house back to Joe for 3 years at 125% market rent
• Joe has first option to buy house @ market (or 125% market) when lease expires

And SSBB works like this:

• Joe owes 250,000 on mortgage
• House is worth 100,000
• Joe Shortsells house to non-profit (bank waives the arms-length)
• non-profit works with investor to finance joe to buy back house @ 125% market
• Loan is 15yr fixed @ 4.5% w/ 5 year balloon
• Joe finds new financing w/in 5 years to avoid balloon

I see in the HAFA guidelines that they're mentioned, but I can't seem to find anyone (homeowner) testifying about success on the 'net.  (Though there are several people who claim to be able to do them).

Before I go into one of these places to be told "Oh, you don't Q for that, but here's the bait and switch", I'd like to know if anyones done one.

Thanks,

-SM

[JM-AM]

While technically it may be possible, it is not likely to be approved for a short sale using your example.

Bank would probably foreclose then to agree to a 150K loss on short sale.

Anyone even if foreclosed on within a certain period of time can repurchase the said property.