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You have to try and negotiate with the bank before the sheriff sale.
It sounds like you have four options:a. Short sale - the rules are this must be an arm's length transaction so you are not eligible to buy your own house.b. Foreclosure - you may be able to bid at the sheriff sale. c. Try to get the mortgage refinanced under the making homes affordable program.d. Pay as you agreed to originally. Phoning the bank and saying "I owe you $200 k but I'll give you $100 k cash if you drop the mortgage" isn't going to fly. I'm a bit puzzled how you ended up with enough cash to have this option when you've just been through bankruptcy.
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For Sale: $159,000
For Sale: $249,900
For Sale: $199,900