A New Email - Short Sale Help!

I have run into some financial problems. I am currently delinquent on my mortgage and I don't know where to turn to. I read information on your website so I'm asking you for help.

I purchased my home in October, 2006. At the time I only had 2 kids, no credit cards (well one with only $500.00 limit) and everything ran smooth. Well, in 2008 things changed. I had my thrid child (still a single mother), and my employer does not pay maternity leave. Also if you recall the price of gasoline got expensive that year. Well, things went downhill since. I started using credit cards for gas and groceries. I obtained 2 more credit cards and personal loans (w/very high interest rates). Not only that, in 2009 my hours at work were reduced to 70-biweekly.

Last year I also got myself in school, so now i have student loans I will need to sart paying on this year. Before I knew it, I was in the hole.

My truck also got repoed early this year.

The situation with my mortgage is the following: I fell behind last year. I called my lender and they sent me a Loan Modification Agreement packet which I signed and notarized, and returned it to them along with a money order representing a one month payment in advance. Well, shortly after I returned that packet, I got another one in the mail that was very similar to it but I didn't return it as I had already accepted the prior offer, and I also called my lender to question the 2nd offer, that representative told me it was simply another offer but I didn't have to accept it. I told him I would just stick with the first offer. Well I was making my payments as the agreement said, but my monthly bills kept telling me I was delinquent. So I called my lender again, a different representative that I talked to told me that I was not under modification agreement, "that the first agreement's processing time had expired, that why they sent me the 2nd one that I declined, and that the rep. that I had talked to failed to look for the expiration time and failed to tell me that." So, I am not under a modification agreement, late fees/charges have mounted on top of my late payments. I am now about $9,000.00 in default and have received a bill asking for that amount and if not paid they will send notice of intent to accelerate - Foreclosure.

With all my other debt, I am no longer able to keep up with my mortgage. I really want to look into a Short Sale if you believe I qualify. Please help!