Large Negative Equity, advice

[David Schach]

I received a call from my marketing efforts and wanted to get some feedback. This person is almost 50% upside down. house is worth about 250K total mortgages 1st and 2nd is around 525K. Obviously the only way this would be a deal would be a short sale, but the gap seems just too large to bridge. Should I just recommend to this person to send a jingle letter and walk, find a local real estate agent and try a short sale to market price??? what would you guys do?
thanks.