If it is your primary residence, I would try a short sale. Even if it does not work, at least you have tried. It will save your credit some, and any consequences will be lessoned.. We always recommend seeking legal advice, but everything points to short sale.
Let me know if I can help you in any way!
Joan Wilson (Realtor, SRES, Ecobroker, Certified REO, HAFA, and Short Sale Specialist)
California Cool 4 Sale
Prudential California Realty
Direct Phone: 760-757-3468
800-975-7481 x 111
Know Your Rights Home Affordable Foreclosure Alternatives (HAFA) Program
Co-author of â€œShould I Short Sale My Home?â€ Advice on what options are available.