Should I wait or should I short sale?I have a home that I purchased in 2007 as an investment property that was estimated at $320K. I purchased it for $220K and then put $70K into it for repairs that were needed to make it liveable. I have a 1st and 2nd mortgage on this property. However I took out a HELOC on my primary residence in order to purchase the property mentioned and to make the needed repairs. The HELOC is on my primary residence. The 1st and 2nd on this investment property are both interest only. The 1st loan is approx. $217K and the 2nd loan is approx. $32K. I owe $50K on my HELOC on my primary residence. I use this property that I want to sell as a rental property and would really like to get out of it as soon as possible and was hoping to take advantage of the Mortgage Forgiveness Act to not be penalized. According to this site my property is work $136K but it's been totally renovated and upgraded inside so I'm guessing its current market value is $150K or slightly better but still not enough to pay off the loans.Should I try to sell it as a short sale if the mortgage company agrees or should I try to wait? It sounds like the housing market will be struggling for many more years to come and I'd like to sell this property and my primary residence to get a fresh start and buy something new at today's prices but I don't know how a short sale will affect me tax wise or credit wise.May 31 2011 - Oxon Hill11YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.