If you have not filed for bankruptcy you still have the right to put the home on the market for sale.  In fact, that is an excellent idea if you are facing foreclosure and feel that you will not be able to resume making the payments.  A pre-foreclosure sale means that you are facing foreclosure but it does not necessarily mean that you owe more to the bank than the home will bring on the open market.

In the event you are “upside down” and the sale will not cover the full amount that you owe the bank, then you need to use a real estate agent who specializes in short sales.  Your listing contract  should state “sale will require lender approval.”  This language should also be included in the advertising for the home so potential purchasers are aware that the bank will need to consider any offer which is submitted.