Have you considered a short sale? My brother is a realtor and he said the negotiations can be tricky. Short sales do happen, and they can benefit the homeowner, the mortgage company, and the buyer. There are more short sales in expensive areas such as California, Nevada, Arizona and Virginia. In many cases the mortgage company knows they will have a loss on home equity loans and lines of credit if the home goes to foreclosure, so they will negotiate in good faith. That is, perhaps with the exception of HSBC, HSBC USA, and HSBC Finance. Are we being mean or ugly? Not really. We will let you decide as you read a detailed report from the homeowner, as submitted to Household – HSBC Watch. Here is the report.