Why foreclose, and have it on your credit for possibly 7 to 10 years? Do a short sale, where it could only affect your credit for possibly 2 to 3 years, with a possibly of purchasing a new home. Have you heard of HAFA, which stands for Home Affordable Foreclosure Alternative. With this program, your home is approved for a short sale, before a offer is submitted, and you get a $3000 for relocation fees. It is not much, but its a fresh start.