I'm not sure how that would work for you, but I am offering a $2500.00 realtor bonus plus $500.00 toward buyers first two mortgage or lease purchase payments if you are a
qualified buyer and can close before April 30, 2008. MLS#2306690 (4961 Heritage Crossing Drive, Hiram, Georgia 30141) in McEachern School District. Contact listing agent for more details.

I would advise you to seek a Real Estate Attorney ASAP. He will be able to examine the contract that you have with the seller and where to go from there. It sounds as you may be in a bit of a pickle

You need to talk to the owner to find out who his lender is and he may very well have two different lenders. He needs to initiate the short sale process, but it would certainly be in his interest to do a short sale rather than let it go into foreclosure. Once the bank agrees to consider a short sale, the real estate agent normally takes over the process to ensure that all the bank's forms and documents are completed. If the bank agrees to move forward with the short sale option, then it is open to receiving offers on the property.

Aaron Hofmann
Keller Williams
770-874-6383

I took the advice about the fha loan...and guess what? i was approved...YES! How can i find out if the bank is amenable....i dont info on who they are financing the home through

You need to talk with a lender immediately to see if you can qualify for a loan. If you qualify for a loan that you are comfortable with, then you could either buy it from the owner prior to going into foreclosure or even better would be a short sale. If the bank is amenable to a short sale, then you could get a much better deal than buying directly from the current owner. But all of this is a moot point if you cannot qualify for a loan.

I am sure your realize the situation you are in, i.e., if the home does go into foreclosure, more than likely you will have to move out. Lenders will require the home to be vacated.
Depending on your credit rating and the value of the home, you may be able to qualify for a FHA loan. FHA loans have a lower credit score threshold than do conventional loans. I would find a local agent that works with FHA lenders and make a run at it. At this point you do not have anything to lose.
I would also recommend you begin looking for a new rental property. You do not want to be caught short on the foreclosure date.