Background: Foreclosures and delinquency rates for mortgages are occurring in record numbers for Destin real estate, Fort Walton Beach, Niceville, Navarre and Seagrove Beach areas of Florida. 23% of Florida homeowners are behind in their mortgage payments. Reasons include high unemployment rates, loss of income due to decline in consumer spending, slower housing starts, and mortgage rate increases after conclusion of teaser-rate periods. Also contributing to the difficulties in making mortgage payments is the softening rental market.  Investors who have rental homes from Navarre to Niceville, or resort rental properties, such as condos in Sandestin, Destin and Okaloosa Island have a harder time getting sufficient rents now to cover their mortgage payments or even getting tenants because of an increase in rental properties on the market.  Higher insurance costs are adding to the difficulty for borrowers to keep up with their mortgage payments.  Now that property values have significantly decreased on the Emerald Coast of Florida, these owners are in a predicament. Many have negative equity, i.e. owe the lender more on the mortgage than the property is worth. When this is the case, and the borrower needs to sell, one solution is a "Short Sale".