Erik, thank you for your advice. I am curious as to why people who stand to make nothing would want to go through the process of doing a short sale instead of letting the bank foreclose on the property. You have to remember that the house is not in my name.

Thanks, cathy

A foreclosure requires the bank to pay up front to perform the foreclosure. Closing costs for a short sale are much less than the foreclosure costs.

Also, short sale prices are generally higher than auction prices. So if the goal is to sell to a third party, a short sale will produce more money.

If the bank wants the property, then it will normally foreclose and bid the mortgage amount at the auction. If the house is underwater (the mortgage is greater than the value) then there will be no higher bids. Then the bank can try to sell it on the market.

Once again, I thank you Erik for your knowledge and your time. It is so hard to maneuver in this life without a healthy income. To attempt to sell property on your own seems like a hit or miss situation that could possibly have legal ramifications if you don't have any experience. Again, thanks !

No problem. A "best answer" is always appreciated.