Lease Backs on Short Sales - Free Distress - Bank Concerns

[Troy Ross]

I would love any feedback on this subject. I am checking out a company that will purchase a distressed seller's home and rent it back to them at a reduced rate, lowering their monthly payment significantly. They will execute an option that, in 5 or 10 years, the original seller can buy back the home at the original price they paid for it.

The first question I have is... Is that strategy legal?

I am still doing research, but I thought banks had serious issues with approving a short sale and allow the original sellers remain in the home.

Feedback welcomed!