Hi Ray! I would certainly think that you could try a short sale. Owing more than you can sell the home for is one of the very premises of a short sale. And, you can clearly show a change in your financial situation/hardship since the time that you purchased. I would highly recommend that you find someone very well versed in short sales and give it a try. Perhaps with someone else on the phone, the answers could come back differently. If you walk away, a foreclosure will loom over your public record forever. If that's what has to happen, then so bit it. But, why not at least try to short sale? The consequences to your credit and public record are a world better with a short sale vs. a foreclosure; and you don't have anything to lose in trying. I hope that helps and wish you the best. - Tue Jul 28 2009, 12:43