Sellers had job transfers from CA to VA in Jan 2012. Conventional 1st with WF and equity with WF. Having to pay over $7K a month for home in CA and rent in VA. Home is underwater over $130K. Seller is retiring in 3 years. Sellers have a surplus of $2000 at the end of month, which they want to put into retirement. They do not want to rent out house since home is across the US. Under regular circumstances, they would have sold the house, but because of the market they cannot get what they paid for it. Isn't this a hardship? If anyone has had a similar circumstances, please help or should I escalate and to whom?

Thanks so much for your help!