Many homeowners are behind on their payments and don't know what to do. Many think foreclosure is the only answer. A negotiated short sale is often a better alternative. A short sale allows you to sell your home for less than you owe with the lender's approval.
The benefits include:
Your credit will be less negatively impacted
You may be able to get new financing in as little as 2 years (as opposed to 7-10 years after foreclosure)
You will likely avoid a deficiency (mortgage debt satisfied)
You will retain more control over your home (including when you will move out) than you will if your home is foreclosed
You will avoid the stigma associated with foreclosure