You have to be eligible for a short sale, based on hardship and if you have assets, they do try to get some of the shortage back. You can look into a loan modification, a short sale or foreclosure. Depending on your job history, income, debt to asset and if you have a hardship, like a recent divorce death or medical bills the bank will work with you. Request a short sale package from the bank and see if you might be able to get a lower fixed rate on your current loan. You have to qualify for it so that might not be an option. Get a good real estate lawyer that can go over the bankruptcy/foreclosure scenario.