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A short sale is better than nothing. Let the house go to foreclosure is the worst scenario for you. Of course that you may need to consult an attorney for any legal concern you may have, but a short sale is a negotiation between you and your lender to try to get any deficiency forgiven,( That is the difference of what the house will sell for and what you owe to your lien holder). A foreclosure may bring a deficiency judgement after the auction which you will be liable for. Besides, if you get a foreclosure on your personal credit report that can create a problem later on to get a screening for a federal job and other issues like that. A short sale with erase those concerns...
Hi Lobo,A Short Sale is an option for people that can't afford their payments any more due to certain hardships. A Short Sale will not work in your situation because it could take a couple of years if not more before you can buy another house due to the Short Sale on your credit.
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For Sale: $85,000
For Sale: $20,000
For Sale: $50,000