You need to speak with an attorney about this situation. Attorney’s can not only advise you on a plan of action, they can also assist in negotiating a short sale with your mortgage company or even a deed in lieu. If you are facing a serious hardship, they may also be able to negotiate more affordable terms for you. These guys are all over the web and seem to be the best around at this type of practice. Go to this website:

Hope this helps!! Good Luck : )

Well, first of all I’m sorry your finances look that way. I suggest you to read the book The Total Money Makeover by Dave Ramsey.

Now, you can only sell your house on a short sale when the bank has already began the foreclosure process, otherwise you can sell it or rent it. If you rent the house, it will be considered an investment for tax purposes so you will have to report all your income against all of your expenses on that house.

If you do not like to read you should then listen to this guy online at He is an expert on realestate an bad finances. He went through your situation a couple of times until he figured out that what he was doing was not working.

Get a pet Sheep!

Talk to your realtor about a short sale, either way you are responsible for the negative!! A short sale would be better then going in to complete foreclosure. If you rent the house have your taxes and insurance (you will have to get dwelling insurance it just covers the house itself) escrow ed in to the monthly payment that way they are paid with the mortgage every month so you do not have to worry.