TI; there are options available for homeowners in distressed situations. The LAST thing one would want to do is have a foreclosure go on their credit record. It sounds like you were exploring all your options, which is the prudent thing to do. Loss Mitigatation/Restructuring and Short Sales are all possible options. The important thing that you should do is keep your property in good shape. If and when you put it on the market, the better shape the home is in, the more likely to command a better price/terms when an offer comes in. I am a Certified Distressed Property Expert and work in the Leavenworth/Lansing area. If you would like to discuss the options available to you, please give me a call. Mike - Thu Apr 30 2009, 08:33