Keller Williams DTC
I think you absolutely should get a market analysis that not only shows what the house would probably sell for now, but what the trend is in your neighborhood as far as absorption rate, days on market, number of homes in foreclosure status, etc. If you see things trending in the right direction, maybe it will give you incentive to stick it out. Then, keep getting a new comprehensive market analysis every six months to keep an eye on the trend.
And do speak to a lender who's willing to keep on working with you even if you can't qualify right now. A good lender should be able to tell you when you probably could qualify, and what you'd have to do to make that happen. I know a lender like that.
I wish you all the best, let me know if I can help.
The home does have value, and CAN be sold, probably under market value though based off of your comments. Contact a local Realtor that has worked your area and get a comparative market anlsys. John Keene below looks to be a Realtor in your area, I suggest taking him up on his offer.
I hope this helps and good luck to you.
Call my preferred lender, Mike Savel, over at Chase Bank. His number is 303-625-3123. Many people come to the belief that they can not qualify for a loan without ever talking to a qualified lender. Mike can run several scenarios for you (with of without your girlfriend, 40-year vs. 30-year mortgage, etc.) and he will do his best to find something that works for you.
If you would like a professional opinion about the value of your home in this market, I'd welcome the opportunity to meet with you and discuss those options.
Best of luck,