As a loan officer I see this type of situation every week. If you can't refi or get a modification, but want to avoid foreclosure or a shortsale, you need to look at these options:
1) You can rent your house to someone if they can cover all your expenses in keeping the property. Do you know what your home would rent for?
2) You can offer the people that rent your house an option to buy it from you in the next few years. I recommend that option be at least 5% of the price you agree to sell them the house for.
You can do this yourself or make a deal with an investor in your area to help you with this. If you have never done this, I recommend you contact an investor and check references and past clients to make sure they will really be able to help you. Regardless of how you decide to handle the transaction, never give title of the property to anyone. They will not need it because the "option money" (w/contract) they gave you, protects them from you being able to sell or refinance the house without their knowledge.
I am a loan officer and real estate investor. If you are interested in speaking with me about your home to see what we can offer you to help you, call me at 704.488.4296.