I have excellent credit, I live alone ( so one income). Unfortunately I lost job in August and have been living off savings which is running dry. No I don't qualify for unemployment. I have been diligent in my job search (20 applications a week, about 1 interview every 2 weeks). I got no job leads, but still looking. I found a seasonal job that is a 75% pay cut and no benefits -- better than nothing I guess. A family member has offered to take me in rent free (long-term arrangement) in exchange for help around the house. I would still need to find a job eventually but no rent & utilities to worry about. Okay, so I can't sell my house because this market is slow & I bought it 2 years ago and the market value is at least $20K less than I owe. I can't rent it out because the mortgage is $300 more than market rent. Texas. The bank (US Bank - FHA) has granted me a short 3 month forebarence from payments. That's helpful but it's not a long term solution since I'm forced to move out due to my financial situation. Can I just give it back to bank? Will they allow a short sale? I heard short sales take a long time. If so, am I expected to pay until it's sold? I do have excellent credit as mentioned but I know that I'm going to have to take the credit hit because I don't see any other options. Looking for best way to handle this situation and what I can expect.