TODAYS SHORT SALE TIP: Owners often tell me they were told they have to be 3 paymentsbehind in order to do a short sale. THIS IS A MYTH! You cna be on time with your payments and still do a short sale on your current home. You must way the factors. A short Sale will cause your credit to take hit but if the cost of keeping up with a mortgage you can't afford is on a downward slide then a short sale may be your best bet. It is better than facing a forclosure and in most cases you can buy again in 2 yrs.
If you are in a situation where you are being relocated due to your job and you are upside down on your morgage a short sale is more than likely your best option.
Make sure your listing agent has short sale certification and has experience in negoatiating with Banks on the sellers behalf to get an approval.