It seems that it is no longer just the homeowners that want to avoid foreclosure, but the banks are looking to avoid foreclosure as well!  A lot of this new strategy will depend on where you live and your individual circumstances but banks are mailing out offers to upside down homeowners offering up to $35,000 for them to short sell their home and move on.  We all know the banks have not been the quickest to understand the housing situation and most of their solutions are coming too late but this plan may be a good thing.  It seems that the banks are realizing that foreclosures are very expensive and extremely time consuming so by offering a decent settlement to the homeowner to get out quickly by doing a short sale they come out way ahead of going through the entire foreclosure process.  Most people that stop paying their mortgages also stop maintaining their homes so by the time the bank gets the home back, which can be a year or more, the value of the house is significantly decreased and the homes are in a state of disrepair.  There are plenty of pitfalls to this new plan such as second mortgages that won’t go along with the first lien and people that don’t qualify but for some it may be an ideal solution!  Information from CNN.