I have often wondered why it is possible for me to walk into one of their branches with my checkstubs, bank statements, tax returns, purchase contract etc...and they can approve and fund a loan in less than 30 days, but with the same documentation they can take 2 months to more that a year to make a decision about a short sale or loan modification. 

I do feel that networking is vital...love this site...  

HUD may point them in the direction of a loan modification or other alternative but, it appears from your writing that the only one that stands to benefit from them not short selling is you.

Does your contract forbid modifications to the property?

I have been talking with them and was just approved for another trial modification.

Usually, it winds up with me getting burned.I've taken to conducting myself by a pretty simple rule: If something involves money either now or in the future, then treat it as business.That means to write things down, document changes, have both parties sign off on modifications of a material nature that could burn you later.

We were okay for awhile, but when we started to struggle and hit the 30 days behind on the mortgage, we called BoA and started the Home Loan Modification preocess.

I was able to negotiate with my credit cards and get through a couple mortgage modifications, just before being foreclosed on.

Just wondering if anyone has some vital info for me at this point???

It is vital to meeting other investor and private money lenders.