This is a viable way to sell your house and banks are becoming a little more effective with these types of sales. I am working with these types of sales here in AZ daily and getting approvals for my sellers.
As Realtors we are only able to discuss the process of the sale. We are not able to provide the type of advice you are asking. You will need to talk to a tax advisor and/or legal advisor to see the potential tax, legal, and credit implications.
I know this does not answer your question though so I am sorry. I am local to your property and can answer any market or listing related questions since I sell in that area.
-Greg - Thu Jul 30 2009, 14:33