Short sales are a win-win for both the lenders and the homeowners.

The lender wins by saving the expenses to Foreclose (Legal fees, Taxes, Eviction Costs, Selling Costs, Insurance, etc.) and keeping this liability off it's balance sheet.   And the homeowner gets both Financial Relief and Emotional Relief!

Here are the criteria to qualify as a Short Sale Candidate:

1. Market price is less than the Loan balance and/or other liens on the Title.
2. Homeowner is financially insolvent.
3. Homeowner can verify a true hardship.
4. Homeowner and all lien holders must be cooperative.

Short Sales can't be done if:

1. Loan has Private Mortgage Insurance (PMI).
2. Bankruptcy proceedings have been started.
3. A foreclosure date has been set.

Do you meet these criteria?   Call your Realtor and give him/her authority to negotiate with your lender to sell your home short.   Although you will take a hit to your credit report, it won't be as damaging as a foreclosure.