They won't short sale an investment property if you have any other assets. IE they will expect you to pump any cash you have into that property to keep it afloat.

If you let it go into forclosure, not only will you ruin your credit, they will come after you for the difference after they auction it off. So if you say have a lot of equity in your primary house, 401k, etc they will get it.


IMHO you have a two options:
1. Keep paying and maybe in 10 years it will come back.
2. Fire sale and come to the closing with a check.

I'd talk to a lawyer about your options, if you went bankrupt you might be able to get out of it. Other than that your stuck.

One more point, at what point will it cash flow? Buying a negative cash flowing property is a horrible idea, but if injecting some cash into it can at least make it break even that might be a way to go. If you can get the monthly cash flow at least even, than it doesn't matter what its worth.

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