Here is my official walk story for those who are interested in a CalHFA walk that wants a quick foreclosure (no "hamster wheel").
In summary, our 640sq ft San Diego condo that we bought in March 2006 was no longer safe or reasonable for us and our 2 year old to live in, and after a Short Sale and Loan Mod attempt and denial, we decided to walk.
1st- CalHFA - $220k IO until April 2011
2nd - CalHFA - $15 silent 35 years
3rd CalHFA - $8k silent 35 years
4th - Local city housing group - $22k
5th - Local city housing group - $10k silent until March 2011
Payment was $1720 (with insur. and HOA), April 2011 it would have been $2200
Underwater - About $200k
Our justification for a short foreclosure and immediate move is due to security clearance issues with my husband's job. Long story short, if we needed to move because of safety issues, we needed to do so quickly. Staying "rent free" would reflect negatively upon review if it came to that.
So we moved to a rental home an hour away mid March and updated our billing addresses with everyone EXCEPT CalHFA (remember this for later).