ANY Possible Ways To Capitalize In This Situation?

[Zach Schaar]

Someone moves out of state, and you rent their home for the time being, hence, paying the mortgage. My wife and I have been since approved for a home and plan on purchasing and moving into a new home no later than January 2014.

The property owner of the current home we are renting wants absolutely nothing to do with the current mortgage. After all, I am the one paying for it. The only bad thing is that the balance owed on the property is $117k, while the appraisal came in around $110k. So basically it would appear it's upside down.

Is it worth it even trying to capitalize and do something with this, and if so, what comes to mind...? Or should I simply pass due to the current status of the mortgage/balance situation?