A Short Sale Alternative for Underwater Homeowners?

While it may appear that the housing market is rebounding, there remains a vast pool of homes that are "underwater" - their owners obligated to pay substantially more to first, second and even third mortgage lenders. Short sales have been one solution. In a short sale, the owner agrees to sell her property for a price which is less than the debt owed and asked her lender(s) to agree to release their lien voluntarily. But that solution has its limitations. First, the owner has to be able and willing to sell. What if the owner wants to stay? Second, the short sale process is grueling in terms of the documentation that lenders require and ultimately the owner is at the whim of the lender(s) to approve.