Legal Question in Real Estate Law in California

There is no "one size fits all" solution to this problem. For example, on the more "normal and gentle" side of the balance, you could add a normal sale to the market through a local real estate firm to the mix of possibilities. On the darker and dirtier side of the ledger, there is bankruptcy (probably not right for you, though). For some, refinancing on better terms is a logical solution.

I think for the average person in your situation, a short sale is probably going to be the most promising possibility, at least in theory. However, we are hearing about a lot of attempted short sales that run into delays of one kind or another and end up with another department of the lender doing a sudden, blind-side foreclosure while the short sale is being negotiated. Also, for a lot of vacation homes, the market is not that great. Maybe you'll be lucky.

In addition, a lot depends upon your personal circumstances, Try harder to avoid foreclosure if your credit rating is important.. Obtain the best financial and real-estate market information you can......you can't make an intelligent choice without knowing what your vacation property is likely to fetch in today's market, and based on a prompt-sale type evaluation, not pie-in-the-sky guesses as to what you might get in 18 months if the market improves and the right sucker comes along.

There probably isn't any single person who can guesstimate your best strategy....the lender's advice would not be reliable, real-estate types might be over-optimistic, and so on. I think you need to look at all the numbers and make a choice that seems right to you.

I would have to consult with you in depth to give you the best advice. Each of the various options have consequence that depend on the underlying transaction.