The move right now is to short sell a home vs. foreclosure or bankruptcy. Seeking the advice of a real estate attorney could save a seller thousands of dollars. Their consultation fee could be worth it as an attorney can explain your options and help you make the best decision for yourself and family.
I wonder how many foreclosed properties lenders are holding in their inventory. It seems that this factor is not being readily disclosed. For a buyer, the short sale process can take weeks (months) to complete whereas a foreclosed home can take 30-45 days.