I am so sorry about the situation you are finding yourself in. It seems to me you are in metro Detroit? I have a background in real estate sales and property management (26 years). Although I haven't been active since becoming a student, I am still very aware of what is happening in the market. Many banks are doing loan modifications (lower your payments, interest rate,etc) to avoid a short sale or f/c. You need to talk to someone in loss mitigation at the lending institution. A friend of mine just did a loan mod and I believe they actually reduced the principle she owed; if I recall is was a significant amount.