[CHensley]

Moe,

We, like many, are in the boat where our incomes have been greatly impacted and we are seeking some help to protect the last vestiges of cash/safety net our family has accumulated.

I'll be brief with the facts. We purchased in Orlando, FL during 2007 for $515K and put down enough cash to result in a note of $380k. We have paid and are paying timely but our incomes have changed. We have tried to refinance but the home appraises for $220k or worse, comparable in the neighborhood result in a value of $200k.

I am going to proceed down the path of hopefully a loan modification but a short sale could allow us to stay in the home. I have a family member who would buy the home and then rent it to us i.e. they would obviously have to get in at the right price. I've been reading the post and it seems obvious that collusion could be construed but if they pay market price, which would make the note ~50% or more (or our new rent) of what our current mortgage payment. We are not people to scurry from our debts but with $50k in safety cash, which would get eaten up pretty quickly, we are about to go "on a burn" given our new incomes.

Any corporation would protect their assets....I am trying to protect ours. We have been abysmally affected by the foreclosures/walk aways in our neighborhood (~50%). Would you have any advice....to effectively negotiate a short sale w/Citi to my family or how to loan mod this so it fits with our income.

Not desperate yet...trying to be preemptive....this could get bad if we need to relocate to for better jobs....Please advise...