A financial advisor is probably more of who you need, but if you did the short-sale now, and then rented at a lower price point, it is very likely that you'd be in a better financial position than holding on to a property that is eating away at all her earnings. Worst case now, she's at zero, with a chance to save. In the future, she could still be near zero, with no chance to save. So examine what rental options exist along with her current income to determine which route makes sense.
In my opinion, if you feel she can hold onto the property for the few more years it could very well come closer to your goal to hold off. This is a buyers market and even if you start at 342K which remains to be seen as I would need to do a proper market analysis, the buyer is going to chew away based on the fact that the are in fact in control at this point.
Fact is no one has a crystal ball, but we all hope the market will again regain strength and if you can hold off, maybe I can rent it for you if you feel that is an option. In my opinion wait if you can, if not then you must do what the market says at the time of the sale.
Again, this is only my opinion.
If you need anything, I will be more than happy to help you no matter what you decide.
J.M. Jones 978-335-9092 Century 21 Northshore
The market will most likely improve slightly in the next 2 years, but probably not enough to reach the balance of the mortgage. Your mother may be a candidate for a short sale, but it would depend on the lender(s) and several other factors, including how much money she has in the bank under her name (if she has too much, the lender will likely require that she use those funds to pay any shortage). The fact that she has health issues may work in her favor when negotiating a short sale wit the lender.
Hope that helps,
If she is facing a hardship perhaps the bank would agree to a short sale. That means she sells the house takes no money from it takes no debt with her and the bank agrees to take the loss. Asking her lender about this may give a good option.