Larry, I know times are difficult and I'm glad you reached out for assistance. There are may professionals here to help. IMO If you are currently making $25,000 per year and your mortgage is $550K, the possibility of the lender modifying your loan is remote. The other challenge is that the purchase of the home by a relative usually MUST BE an arm's length transaction (meaning a different last name, etc). And, if the bank finds out about it... you can just about forget about the bank accepting the short sale. I would contact an agent in your area who has worked with BofA to discuss your situation.