With the ongoing mortgage default crisis showing no sign of abating soon, creative solutions must be developed to assist homeowners that are nearing default.  The sale leaseback idea is an idea that just could benefit homeowners and investors alike, especially investors from Canada.

With the Fed lowering the prime rate and then some of the major banks obtaining bailout funds, the only people not being helped by all the governmental action are the homeowners themselves.  The differing sale leaseback solutions offer homeowners a chance to get out from under the burden of default by selling to a buyer that then sets up a long term lease agreement with the seller.  Nobody really loses in this scenario.

The seller needs desperately to get out from under the burden of their mortgage for whatever reason and must offer the house for sale at a reduced price in order to attract buyers.  Granted the seller isn't getting the best price for their home, but with the falling real estate market, they are getting out from under a possible default or bankruptcy.

The buyer in the sale leaseback arrangement gets a solid investment for considerably less money since the Loonie is now worth more than the dollar; the current real estate market is falling and gets tax benefits in the process.  Everyone is motivated in this scenario and comes out a winner.