Note; If you try renting it out, and your Lender finds out, they can (probably) immediately call in the loan, (or some such punishment).
A lot of people have been in your situation over the last three years; there is no easy way out, no soft landing.
The best suggestion I can give; if you afford your monthly vig, stick with it for another year or two:
The consequences of a Shortsale or Foreclosure is probably more than you will lose by paying on a dead horse.
A Shortsale would be second best; talk to your Realtor and the Loss Mitigation department to your Lender.
Good luck and may God bless... more
if it is just base don property taxes, the seller would pay the taxes in advance for teh year on the HUD. It would only affect your closing costs very slightly, if yiour bank was going to start an escrow account, it coudl eliminate your need to prepay 3 months of taxes yet they may want to do it anyway to establish teh account. You should ask your loan officer to explain it to you. good luck with your closing... more