[HopingtoFind]

Update: I spoke to my father, and he let me know that he went to speak to an attorney, they have attorney and Realtors in that office who specialize in Short Sales and they advised him to proceed with Short Sale... he said that if they do a short sale they wouldn't have to pay for about one year which of course means saving significant amount of money.

I also made a phone call to their servicer which is HSBC to find out what they need in order to proceed with short sale, and got to talk to an unpleasant woman who was basically saying that they need to list at fair market price.. I said but the fair market price is currently lower then the loan.. Then she said she (my mother) would be responsible for the difference.. I did mention to her that my mother is about a year or two away from her retirement... In any case she just said to bring an offer.. I also found out that investor is Freddie Mac and they have PMI insurance on this loan, don't know if it means anything...

My father thinks to stop making payments at this point and proceed with short sale as advised by an attorney. I also wonder if the lender can come after the rent they are receiving from the Tenant if they are doing a Short Sale.