According to industry experts, over 900,000 homes are currently in foreclosure. Needless to say, this is an all time record. We may have even surpassed records set back during the depression of the 1920s were thousands lost their properties.
Loxbosh Properties ( http://www.loxbosh.com/), a property management and professional services firm based in Florida explained that people do not have to fall prey to this ever-growing problem. Simply perform a short sale of the property, and rid yourself of the financial liability without having to foreclose.
Remember that interest is paid ahead of the principal on a loan. This means that a lender is more likely to accept an offer from a qualified buyer, even of the offer is less than what you acctualy owe on the house. There are many investors nationwide lookinng for such deals, here is one example: http://www.homevestors.com/
You have to bear in mind that foreclosing not only means a loss of your property and money invested, but foreclosures remain on your credit file for up ten years which makes it somewhat difficult to get new credit.
At the same time that foreclosure rates continue to go up, bankruptcy filings rose 17%. Property values dropped substantially, placing owners upside down (Meaning, they owe more on their loans than the property is worth).
Finally, unemployment rates are also on the rise, making lenders who have already been hit hard by the huge losses they have suffered due to subprime loans having defaulted feel very uneasy. Lately, getting a loan has become a bit difficult since lenders are now very cautious as to who they lend to, etc.
HOW TO PERFORM A SHORT SALE
ehow.com provides steps on how to perform a short sale:

Things You'll Need:

* Financial Calculator

• Real Estate Brokers
• Online Mortgage/finance Services

Step 1:
Verify the value of your property. If you are selling the property through a real estate broker, your broker will provide you with an estimate of market value. If you are selling the property yourself, do your own market analysis of the area and your property.
Step 2:
Add up all the costs of selling the property. If you are using the services of a real estate broker, the broker will provide an estimate of closing costs. If you are selling the property on your own (for sale by owner), call a local title company or real estate attorney and ask, as a seller, what the closing costs will be.
Step 3:
Determine the amount owed against the property. This will be the total of all loans against the property.
Step 4:
Do the calculations. Subtract the total amount owing against the property from the estimated proceeds of the sale. On a short sale, this will be a negative number.
Step 5:
Contact the lender or lenders. Talk to someone in the customer service department and tell them the situation. They may direct you to a specific department. Talk to a supervisor or manager if possible; this person will have more authority.
Step 6:
Ask the lender what its procedures are for a short sale. Some lenders are willing to work with you by reducing the amount owed or making other arrangements. Others will look to the agents involved (if any) or anyone else who's making money off the transaction to see if they are willing to make concessions to make the transaction happen. Still other lenders will tell you that your debt is your responsibility, one way or the other.
Step 7:
Sell the property.