I think when it is hard for you to continue making payments on your mortgage you can look at Loan Modification these days. It is really attractive option and has absolutely no downside. It doesn't even require your credit report to be pulled let alone foreclosure record on your report.

There are three ways of doing it:

1. Do it yourself. Risk in doing that is, lenders will be much more sophisticated than you and they will take advantage of that. It is definitely not recommended unless you are a broker yourself and understand the process well.

2. Find a loan mod company. When you do that make sure the company you work with is attorney based. There are many many companies that do it through in house process. Some call it "underwriter" or "broker" based process. It is never a good option for the borrower. For the same price you can find a lawyer based loan modification company to do it.

Check out http://www.LoanShrink.com - they offer money back guarantee unlike others they refund every single penny no catch ! most others will not refund $999 application fee or something similar.

Good Luck !!

Esther,
Short Sales have certain requirements. You must have more of a need than just being upside down in the house. If yo can afford the payments, if this is not your homestead, if you just want to spend your money else where, these are not reasons for a short sale.
You must have a true hardship that makes it impossible for you to make the payments on your homestead to qualify for a short sale.
Your home must be listed and you must behind on payments before any lender will consider and then many won't unless you have an offer.
If you are considering a short sale be sure you contact an agent that knows what on is and how to handle it.
Margaret

Possibly...

You should use a short sale as an absolute last option. I would like to hear about your situation before i pass judgement on it. There are many alternatives, but untill I get all the information, I won't be able to help you. Call me anytime today at 832-622-8100 and i'll be glad to help you out.

A short sale is definately an option. We would be happy to discuss all your options if you contact us at 713-503-5451. Once I get a little more specific information about your situation (subdivision, loan info, etc.) I better determine and advise you as to how to move forward with a short sale offer to your mortgage company.