Upside down on Mortgage - Pre Foreclosure

[Julie Smiertka]

Hey guys!  I have a potential client i'm working with.  Her Ex-Husband passed last month and the home is now in Pre-Foreclosure.  She signed the Deed of Trust so all of the account information is being sent to her.  The ex-husband left the house to his daughter so the mother is trying to help as much as possible.

The payoff for the home is way more than the house is worth in the condition it is in.  I've not worked with anything like this before and wanted to know if the only option is a Short Sale?

Can you negotiate with banks for the payoff to be less than what it is without going through the Short Sale process? 

Thank you in advance for any info!