My sincere apologies for your losses; I cannot even imagine your sorrow and pain. To share that is immense.
You are truly a strong individual and your fiance is very lucky indeed! For every door that closes, another does open; although sometimes we don't see it that way, but you are not alone and I know that doesnt make it any easier. I just wanted to tell you that I'm sorry for all your pain.
Being current is a very good thing. Depending on your bank, they may allow you to sell and maintain a current status; or possibly allow you to run 31 days late to entertain a short sale.
From my experiences doing shortsales, your hardships have merit. I think you would be best to short the home Gatorrn and close that door. Given today's market, the $70K you are short by is a small amount; considering the losses that are out there. Depending upon the accounts you maintain for your savings, they may be exempt. I can refer you to attorneys with whom I've worked to give you some guidance. I come from 30+ years of banking background (Canadian) and here in the US. This experience is a huge asset for me to assist my people that I have worked with. I would be more than happy to help you any way that I can. I can be reached via phone or email.
239 691 6169
The other issue you haven't mentioned is the tax implication of a short sale. Was the existing mortgage(s) used to purchase the property? Did you ever refinance?
Most any of the Realtors who have responded to you probably are experienced in short sales. I certainly am. I have a few attorneys who may not charge for a consultation. If you want to talk about your short sale situation in private, call me and maybe I can help.
Broker, Florida WestShore Realty
Also, if the bank allow you to do a shortsale is because you can not afford your mortgage.
Call me or we can meet at the office. Let's set a time up.
Do not have the money in the same Bank as your Mortgage!
If that is the case, change it tomorrow.
You should have no problem with your Hardship letter; the details are there and your are articulate.
You need to get a good Realtor on your side to help you. Please say you will.
Good luck and may God bless