Hope for a Short Sale with Citimortgage? Still Current for Now (Florida)

[TrappedFL]

Anyone have experience with Citi that may shed some light on their SS requirements?

The deal:
I am current on mortgage, which is a 30 year fixed at 6.8%, the balance is now $250,000. Fannie owns my loan. Bought home in March 2007 at $270,000

Value of home has plunged to $160,000.00 (Florida is still falling). Have been denied and mod and I will not qualify to refi even under the forthcoming 125% standard.

Although I can afford payments now, the house needs work. I had not intended on staying here for years, and am planning to get married, at this rate he and I can never buy a home together. I am willing to come up with some $ for the deficiency through signing a note, but I do not have much reserves. I just want to move on and I am fearful for my job and income as my field has been hard-hit and my company has much less work. Rent would not cover the mtg and expenses if I had to relocate.

What are the chances of getting a short sale in which at least SOME of deficiency will be forgiven? I have had a number of interested buyers (have listed home as FSBO). Will CITI require that I list the home with a realtor or can I FSBO it?

Has anyone has success with the lender agreeing to some release of deficiency, if seller takes back a note in some amount or brings cash to close?

[davadad]

I believ the home does have to be listed with a realtor... What was the reason you were denied??

[TrappedFL]

According to Citi the mortgage payment is less than 31 percent of gross monthly income. I will not be able to refi under the new program, either.