Some great info Thank you, I figured my math was off.

So I didn’t some more checking at it appears I was incorrect my house was worth 360,000 in Aug 01. That is a bit of a relief as the posters mentioned 2000/2001 being more realistic. As you can probably tell it’s slowly sinking in how low my price will go. I’m currently considering loan modification with Green Credit Solutions but don’t want to go through all that if it’s not going to actually allow me to stay in the house when 2011 hits. But what’s a fair price to mod it too, I mean technically I agreed to pay 560k plus interest so I guess the fair price would be 560k.
My wife’s friend recently short saled a 07 purchase and bought the house right next door (literally) that was also a foreclosure. They put 3% down and got a rate in the high 6’s. I was impressed a bank would loan with only 3% down. So Eventually I’ll have to research and pick which is best for me, loan mod, deed in lieu, foreclosure, short sale, etc. I plan on posting whatever my experiences are if nothing else to help others or so the renters can laugh at another lemming over the cliff. Ha.