Thoughts on renting property back to former borrower

[Bob Malecki]

We have a SFR in Michigan that was taken back at the FC sale last December and the redemption period expires on June 6th. The borrower may still be in the property and one strategy we considered is to approach the borrower to see if he wants to remain in the home and execute a rental lease with our company as the landlord. This way we avoid eviction/REO resale and reposition the asset as a cash flowing property.

I'm sure that this scenario has some risk especially in light of CFPB regs. Does anyone have experience or comments regarding the viability for this approach? 

Thanks