Help Please: Vacation home Short-sale or walkaway with Chase Home Finance

[Mike]

I bought a vacation home at the peak of the market with chase. At the time the loan was 80% LTV but since then the bottom fell out, the area my property is in was hit BADLY by the subprime debacle and so foreclosures are through the roof. My property is worth just over 50% of what it was worth when I bought it and so now I'm upside down. It's not rentable because of massive availability of newer homes for cheaper. My income has been impacted by the capital markets too. So, now I'm in a situation. I have a anchor around my neck with this property and would very much be interested in a principal reduction but Chase Home Finance is yet to roll that out as an option. I cannot keep this property -- its too stressful for my and my husband; I'm still current with it but don't expect that to be the case in the next few months. Chase said I can list it with an agent and try to get approval for shortsale but I'm afraid Chase will try to come after my retirement fund--when they process my documents for shortsale. I would much rather take the 7 year hit and give up this crappy piece of property while protecting my other investments. I'm afraid my only option at this point is to walk-away and give the property back to the bank. Can someone please advise? I would prefer to find a mutually agreeable soultion for me and Chase but thus far I'm afraid there is none.