As a (CDPE) Certified Distress Property Expert, I can counsel homeowners in the various options to consider if they find themselves in a situation where they are having difficulty affording their mortgage payment or an adjustment in the interest rate is just around the corner and they will have difficulty paying the new ARM (adjustable rate mortgage) payment with a higher rate.  The short sale of a property is a difficult decision, the consequences of which are ALWAYS better than a Foreclosure.  Make sure you have all the facts by consulting an expert so you make the right decision for you and your family.

A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale and the loss associated with writing off the bad debt. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy at these banks and the Obama administration have also improved the chances of getting a short sale approved.  There are other options however and you should consult knowledgeable authorities like me that can provide additional resources to determine if this is your best option.

Here's a more official definition of a short sale for those less familiar: