questions about a ” short sale” on a home in forclosure…?

Does your home have to be in forclosure already for this, or is that too late? Some body please explain to me about this process, my home is right now in default and will be forclosed pretty soon, I’m afraid. My husband and I have it on the market, but just can’t sell it. We really do not want to have a forclosure on our credit record, but our choices are getting slim. Please help if you know of a solution.
More info, we both work, we have 2 kids, and we have just bitten off more than we can chew. I know , really stupid, but now to try and fix things, thanks in advance!!!!

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