Times are tough for everyone, the current market has devasted home values in many areas of the US and Fresno County is no exception.  Over the past year and a half I have had the opportunity to work with home owners when they have been faced with the difficult decision of what to do when either a) they have lost their ability to pay the mortgage or b) are under water by $100,000+ between what they owe and what their house is worth.  At this point your options are to call your lender to see what they recommend, maybe a loan modification, maybe a short sale, died in lieu of foreclosure or foreclosure.  You should also consult an accountant and lawyer to discuss the ramifications of any of these options.  You need to do something before a NOD (Notice of Default) is filed if you can...DON'T WAIT!  As a REALTOR I can help you prevent foreclosure if you come to me early enough in the process.  You want to prevent a foreclosure because that is a matter of public record and stays on your credit for 7-10 years.  I have attempted to help several people just to find that they lose their house to foreclosure because they left it too late.  A short sale is like a traditional sale but you have the lender making the final decision on the terms & conditions (price).