As long as you know the risks and are willing to do it, there's probably nothing illegal about the owner renting the property to you. If the owner is collecting rent from you and not making the payment, that might become an issue for the owner. I'd also ask how close to foreclosure the seller is so you might have some idea how many months before you have to move again!

Also, as a matter of disclosure, I'm not an attorney and I'm not giving legal advice so if it's legal advice you need, I'd recommend that you consult an attorney. There's no great answers about short sales because although there are some things that are similar, there are also many variables from one short sale to the next!

Good luck with your decision. If you're interest in seeing all bank owned properties, corporate owned, pre-foreclosures, foreclosures and short sales go to http://www.MyFloridaHomesMLS.com/marty and click on the big "Foreclosure" tab on the home page.

Marty Hunt
Realty Executives Seminole
marty@martyhunt.com