170k, owes as much as home value, SUGGESTIONS?

got a motivated seller.. a month behind on payments. 5bed/4bath home value: 170k amount owed: 170k 1st: 80k 2nd: 70k (home equity loan) 3rd: 20k monthly payments respectively: 750,1100,250 I need some creative ideas to help this guy out. One idea that popped into my mind is to let it go into preforeclosure and do a short sale... is that prudent? Thanks. [ Edited by mcmoxie on Date 05/20/2003 ]