Hi Patty.
First, you might want to read my blog on the Foreclosure/short sale process. (See link).
You have two options:
Stay in the home or move.
If you would prefer to stay in your home, then talk with the lender about a loan modification. Explain how it came to be that you at one time could afford the payment, but now you are unable. Perhaps they can lower your payments. Most lenders would rather do that than a short sale or foreclose.

If you absolutely have to move:
1. Lease out your home - could be a good financial move in the long term. Check with a CPA on tax consequences.
2. Apply for a short sale. Proving the Hardship is the most important thing. Generally you need to be broke and unable to pay your bills. People that write us and explain they need a short sale so they can sell their current home, which has declined in value, so they can buy a bigger home because values have dropped, don't get it.

Good luck.
If you need a recommendation for an experienced Realtor in your area with Short sale experience, please let me know.

I do short sales in your area. I would be happy to answer your questions, call or email me anytime.

Patty,

Are you the homeowner looking at selling short? Or are you a Buyer looking to purchase a home that is offered as a Short Sale?

Art Hotes ~ RE/MAX
Art@ArtHotes.com
http://www.ArtHotes.com