Several of the big banks are offering incentives to sellers to do a short sale rather than a foreclosure. It is better for the banks, and certainly better for the sellers in almost every case.
Ironically, the Florida legislature is about to pass a new law that will eliminate short sales because there won't be time to get them done.
Read about that in my blog:
All the Best,
I just did a sale where the buyer also walked away with $20k. By the time all was paid the bank netted about $12k on a loan for $169k. The owners never paid the mortgage, credit card liens, association dues. They basically lived there for free for more than 3 years, and then got $20k to move out and leave the condo in good condition.