I just wrote a detailed blog on this under BLOGs and TIPs on my website http://www.LasVegasRealEstateConnection.com called Recovering from Bankruptcy and/or Tough Financial Times.
If you think my team can help, call me.
I am very sorry to hear about your situation. Let me assure you, you are not alone. My entire business is focused around helping homeowners that are upside down in their homes and suffering a financial hardship avoid foreclosure. I have an very high success rate with selling distressed properties. Your hardship seems sincere and you should have a good chance of getting your lender to approve a short sale. I do not think a loan modification will work for you because you are no longer employed. But, it never hurts to ask your lender if you qualify for modification - assuming you want to keep the condo.
Las Vegas is seeing an increase in home sales over 100% over last year. If your property is marketed and priced correctly, it will sell. If you would like to discuss the specifics of your situation privately, please feel free to give me a call. Finally, I am not sure your condo is currently listed with a brokerage, but if so, my response is not meant to be a solicitation of that listing.
Prudential Americana Group Realtors
You have some good answers below already. There is one item I wanted to add. If you had a true soft prepayment penalty on your existing mortgage you could have sold the condo and not had to pay any pre-payment penalty. The soft prepayment means that you can not refinance the existing loan without having to pay the prepayment penalty. When the prepayment penalty is hard then you have to pay the penalty any time you pay off the loan regardless of if it is due to selling or due to refinancing.
I spent over 10 years working in the mortgage industry before I got my Real Estate license.
I think that doing a short sale is your best option when considering your situation you described above.
There have been many changes to what lenders are willing to do, so if you want to stay in the home, you may want to look into loan modification before attempting a short sale. If you do look into loan modification, I would avoid any company charging a non-refundable upfront fee. The other thing to consider about loan modification is if you're not making payments, don't wait too long to attempt a short sale. I've seen some people trying to do a loan modification give up and try to short sell, but loose the home because there wasn't enough time before the foreclosure sale.
Realty One Group
Your scenario is complicated but not new to this area with housing and unemployment . It would be better to discuss this over the phone or on private email. I would have a few questions for you. Congratulations on the new baby.