Developing an exit strategy when you no longer can afford your mortgage is extremely important to your long term financial well being. This decision is made all the more difficult when you factor in the feelings of shame and failure which accompany the loss of your home. The most important reason for considering the short sale is that you will have a firm answer from the bank regarding whether or not they will pursue a deficiency judgment against you. Right now, the banks are predisposed to not going after homeowners who have worked with them in selling the property. This means that if you help to sell the home, no matter what the amount of the loss is to the bank, they will send a 1099C at the end of the year, thus closing the books once and for all on the transaction. There are several other advantages to the short sale (versus foreclosure) that you may not know. There's a lot of misinformation out there about this situation. It is very wise to invest an hour of your time and talk to a Certified Distressed Property Expert (CDPE) like me and to fully understand that how you exit this current difficult situation will matter to you a great deal two years down the road.