Does anyone have some advise for a fustrated USAF member. I am active duty with a house in Northern CA we bought 3 yrs ago for $593,000 and put in over $25,000 in improvements. We put $100,000 down and have two mortgages with Countrywide ($28,500 and $460,400). We've never missed a payment. Unfortunately, the house has been on the market for over 6 months and is now listed at less than $500,000. We stand to loose not only our investment money but even more. The AF made me move in July to NE and my spouse is still in CA trying to sell the house. I am living with a relative because we can't afford to get anything in NE. We have the income to pay the mortgages but it's like throwing money away since we will never recoup it anymore. Does anyone think we would possibly qualify for short sale and what do we have to convince Countryside to do so? ALso, how bad will it affect our excellent credit rating is we let the house go into foreclosure ? CA is a nonrecourse state so they couldn't come against us for any deficienty.....right? Thanks so much for any help you can offer!