My story - all advice appreciated

[Joel Fraser]

Hi I've been reading the threads with interest and would appreciate advice as it pertains to my situation.Six years ago my now ex-husband and I refinanced to pay off a large amount of debt from his failed business. Even though I was unemployed at the time, a lender allowed us to refinance to an ARM based on the then value of the house and my employment history (until that point I had been employed continuously throughout my career). While I had reservations abut the new amount and our ability to make the new payment, I went along with with arrangement. Sadly, after signing the papers our marriage went from bad to worse. Because he never contributed towards the payments, I was only able to pay the minimum which meant that was a very large mortgage ($480,000) has been growing ever since. When we divorced last year (because even I can only be an idiot for so long), I was awarded sole ownership of the house. It was already on the market and my lawyer and I hoped for a timely sale that would allow me to get out with enough money to pay off the mortgage and my credit card debt and move on. Until now I have been able to keep up with all my payments. However, starting next month, things are going to get very dicey. At this point the house has been on the market over a year with the price going down steadily. I had recently accept one very low offer but the lender wanted the buyer (who had been pre-approved) to up their deposit from 20% to 25%. Which was the end of that.My questions are: 1. Would I have a chance at getting a mortgage modification based on the hardship of the divorce and does even asking my lender (WaMu) that question set off bells and whistles? I do have a decent job and make a good salary - it's just that EVERYTHING is going towards just barely keeping my head above water.2. Should just I consider approaching them regarding a short sell?I want to do the right thing. I also don't want to wait until I start missing payments. Any thoughts?Thanks.