We bought in the height of the market. Cut to 9 years later after a so called in-house Chase mod a few years back (which really just added what we missed on to the back of the loan, but 6.5% int rate stayed the same) and a discovery that the 2nd was lost and never recorded therefore not on title, we are highly considering short sale. Over the last year we have applied for every program, loan mod, refinance possible. Chase has said no to everything. Last summer my hours got cut by nearly 25%, our car needed to be replaced and now Chase screwed up our escrow and our payment is increasing, then we just were notified that due to the leak that we had last year (due to the builder) our homeowners ins doubled, so that will increase it again and we still have that lovely 6.5% interest rate. We were hopeful that we had a bit of equity and do a standard sale and get out of this lovely but overpriced money pit. However, it has been determined we are a bit underwater ($15-25,000). We haven't missed a payment in years (only during the original loan mod), but honestly I don't know how we can continue this. I am just confused if people short sale for such a small amount of money. Thoughts, tips, expert advice??? Will we be responsible for the difference or the tax on the difference???