Foreclosure questions

So I feel kind of weary posting this but for the seasoned vetrans I feel I have another family here. We live in a 2 bed 1 bath condo. About 9 months ago we fell behinde on our payments, me being laid off and just lack of $$. Were in the foreclosure process now and I feel with this new found knowlage I can get us out of the jam and maybe even make some money. So the condo is in my fiance's name because she at the time had pre approved the loan. We paid $147,000 and owe $138 with fee's as a pay off. Well we had sent papers last month about the loan mod and in that time of the foreclosure they said that we didnt need to pay even know we wanted to even if they escrowed the money. So now they denied the mod with there dragging feet. The loan is "assumible" I figured I could buy it as a short sale and save money and walk away with a nice fat check at closing. Any help would be appreciated.