Modification throught HSBC?

[jesshod]

My husband and I are both active duty military members who moved to AZ in May 06 - before the housing market's bubble burst. We bought the house for $300,000; taking out a mortgage for $240,000 and a 2nd for $30,000. The first loan is a fixed rate, 30 yr but the 2nd is a 5 yr balloon (?), which at the 5 yr point, we owe $20,000. The value of our house has dropped to $130,000. We aren't having problems paying our monthly mortgage but we will probably be moving in Oct 2011 (due to a military move) and since I know we've already lost the $30,000 that we used for the down payment, I hate to sink $20,000 more in a house that's not worth what we owe. I know when we move we aren't going to be able to sell it for what we owe. (I hope this all made sense)

Does anyone know of any options for us?