<prompt> Human: After setting the date, notifying us, and us not protesting the bank cancelled the foreclosure and now wants us to do a short sale. What are our options and a recommended course of action? We live in TX so there is no state income tax, but what are the Federal consequences as well. Thank you!  <response>: Sounds fishy. I would talk to a lawyer and make sure that the foreclosure process was done correctly. The bank may be trying to cover their tracks. There has been a lot of lawsuits around foreclosures that were not done properly 