Shannon
Please read my five part blog on short sales and foreclosures
http://activerain.com/blogsview/125091/How-The-Foreclosure-Process
Every market and lender is different. The SHOULD negotiate with you.
If after you read the blog you have more questions, please let me know.
Best of luck to you.

Fri Feb 8 2008, 15:04

It may be possible. The first thing you should do is contact the loss mitigation department of your loan company. Be honest with them about your situation, and see what they say. If they indicate you may be a candidate, here is what you can expect. First you need to find a buyer for your home. Then you submit the purchase contract, along with a "short sale package" to the loss mitigation department of your loan company. Here is a link to site where you can find an example of the documents included in the package you will have to submit. http://www.homeq.com/mortgage/lossmitigation.jsp#
It's sort of like unapplying for a loan. You have to document your financial situation, and demonstrate that you have a legitimate hardship that has led to your inability to meet the terms of your loan. Once you have a buyer, and submit the paperwork to them, they will evaluate the situation and make a decision. It can be a long and involved process, but definitely worth a shot if it will save you from having a foreclosure on your record.

Fri Feb 8 2008, 06:22

They may ,is your home currently listed with a Realtor? What are your financials like now,what was is the reason you are not current with the mortgage , Write a hardship letter . From the process you can expect a Realtor to do a BPO on your home and an appraiser for an appraisal they will work for the bank ,both of these will do interior photos of the home . I also do Loss Mitigation Consulting and if you would like a free package to send to the bank let me know .More info is on my website

Fri Feb 8 2008, 04:48