90% of anyone who attempts loan refi, loan modification or short sale will be summarily rejected and their precious time wasted. There’s no upside for banks to cooperate beyond the political token degree. The NPV of any of these alternatives are better than the auction price of a foreclosure sale but not better than the insurance payout if you default and foreclose. Foreclosure is what banks want because of the bet against you. It’s really the only reasonable thing anyone should consider. Don’t waste you time – just let it go. You actually don’t need it as it owns you more than you own it.

Also file for bankruptcy if you have non-recourse loans – otherwise the agony won’t let up as they will still come after you for those and you still won’t be any more able to afford to pay them. If you can, do a full Chapter 7. Statistically most recent Chapter 13 filings eventually become Chapter 7 filings anyway because of the precarious position most folks are already in in terms of job security, medical care security and debt load. The cost of a Chapter 13 is far higher and you’re still likely lose it all anyway in a Chapter 7 down the road. Cut your loses and avoid the needless and inevitable headache!

Until you see folks from Wall Street facing criminal indictment, you have not a single moral or ethical reason to fell even a twinge of guilt about deep sixing it all. Not even a twinge.