If you find yourself in the situation where you need to sell your home, but owe more than it is worth, then you might consider a “short sale” of your property. Your lender would have to agree to forgive the difference between what you owe and what it is worth at the time of sale. Some banks are easier to work with, and the process could take months. But if your only other alternative is foreclosure, then a short sale is worth a try since a foreclosure will damage your credit more than a short sale would. You should always consult your accountant and/or a real estate attorney if you have any questions about tax or legal ramifications about either choice. And never be afraid to speak with your lender; they may be able to offer you a loan modification (based on your own individual circumstances) in order for you to stay in your home. Never hesitate to call me if you have any questions about listing your home as a short sale: 949.525.5905