Foreclosure, Deed In Lieu or Loan Restructure?

I became disabled from a motorcycle accident and fell behind in my payments and stopped paying my mortgage. I requested to do a short sale, the property was listed for 6 months and I then requested to do a Deed In Lieu. The lender told me that they would give me a 120 day extension for the short sale, but never mentioned my request on the Deed In Lieu. Then this past Friday I started receiving letters from attorneys wanting to help me to try to save my home. In these letters it stated that my home is scheduled for a Sheriff auction next month, falling way short of the 120 day extension I was told we had for a short sale. So here is a wild question. My home just had a second apprasial and appraised at $33k, about $45k less then what I owe. My realtor told me that she just received a call from the lender to instruct her to lower the price even more. Why won't the bank offer to sell me my home at that same price.....I could afford it even on my disability.....is it possible? by tomree_884_857 from Memphis, Tennessee. May 14th 2012 Reply