How do you get out of a mortgage by doing a short

[tall_pisces_f_dc]

sale without being in foreclosure ? Because of decreasing property values and lots of homes in foreclosure in my area, we would like to get out of our current mortgage. We have no late payments and are not in danger of defaulting on our current loan, but it is interest only and houses are on the market (exactly like ours) for half of what we currently owe. Does anyone know how to do or have you done it ?

[winningmoves]

Your greatest problem may be your ability to pay since banks do not like to lose money with out reason. Mortgage services normally require, as part of a short sale, a financial statement and hardship letter written by you. Your best choice may be to contact the loss mitigation department and discuss the possible solutions if you are running out of time on the interest only loan. They may consider restructuring the loan or deed in lieu of, etc. If you have a few years consider riding the the low part of the real estate wave for awhile and with luck it will go back up before your loan has timed out. I offer no legal advice, but as a Realtor that is involved with the Reo market I am quite sure the bank would rather negotiate a solution as apposed to acquiring another property to sell at a loss. If you need additional info feel free to contact me with specific questions.
Best of luck