re: underwater on a real estate loan

quote:

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She really wants to relocate because there has been numerous break-ins (she's been lucky so far) and she is scared living there.

Any advice?

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For the most part, lenders/services want to see a documented hardship before they entertain an alternative to foreclosure. If your daughter is making the payments OK, then this will be very difficult to do.

Since she just wants out of there (ie no modification) then i think her only alternatives are to try for a short sale (tough to get approved for reason stated above) or stop making the payments and bail.

Either option is going to be painful so she needs to really evaluate her situation to make sure it's worth it.

ETA: Another alternative would be to rent it out. If she cares about her credit, this might be a better option even if she's still coming out of pocket a little bit each month to cover the mortgage.