Several of us here deal with the process every day. All the way through it.
As a rule it is almost always better to try and work out something with the bank. Since a loan mod doesn't sound like it go you may want to discuss a short sale with them. A deed in lieu lets you give the house back to the lender but most will not consider it unless you try and sell it first.
Credit score damage is hardest with a foreclosure, a little less with deed in lieu and usually even less with short sale. There are a number of variables with the last two so I have to be general.
Steele V. Propp
Certified Distressed Property Expert
Schatz Real Estate Group
Bank Owned Property Division
1009 Mainstreet
Minneapolis, MN 55343
www.shortsalesMinnesota.com
