My wife and I are facing foreclosure-we do not have a government backed loan, so no possibility of HAMP/HARP/etc... We do not qualify for our banks modification program because we make too much. We can't even hold them off for more than a year or so if we default because it's a small local bank, no hope of tying them up beyond the normal judicial period for New Jersey. The thing that really burns is that we don't want to leave the home, our town, our friends, our neighbors, etc... It's the only home our daughter has ever known. We have some friends who are financially much better off than we are who have been amassing rental homes in the down market. Would it even be in the realm of possibility to attempt to broker a short sale to them rather than walk away from the home? We figure they would get the house for a song, and be able to rent it to us to cover the mortgage, taxes, and insurance, which would be less than what we're paying right now. They would be getting good reliable tenants that they've known for years, and we'd be getting to stay in our home, at least until we are back on our feet and ready to move on. I should also add that we received a CH7 discharge 18 months ago so we would not be liable for the shortfall on the sale. I know that short sales are never easy, but I'm wondering if we should investigate this option further.