2 months bank staatements
2 pay checks
2 year tax returns.
list of expenses
The bank may ask you to help pay for the loss.
It is in there hands and they have guide lines they have to follow.
Homestead realty Inc
The first thing I would suggest, is to talk to the Loss Mitigation department at your Lender;
They will be a lot more receptive than they were two years ago.
Maybe they can work with you as far as restructuring the loan, lowering the Interest Rate and allowing you to rent it out.
I cannot stress how important this communication could be; to you!
Second option would be a Shortsale; you would have to talk to them about your HARDSHIP and Listing the property. If you have saved $20,000, you may have a hard time proving a hardship; added to the fact that you are not delinquent.
DO NOT give $1500 to some company who promises that they can get your problems solved for you!
An alternative would be to talk to them about a Deed-in-Lieu, whereby you surrender the property to them in exchange for a release from the debt. (You will want a letter stating that they will not pursue a Deficiency Judgement against you.)
Good luck and may God bless
You might consider refinancing BEFORE you start any of this, tho, if you can reduce your payments.