If you are living in a underwater mortgaged home, it can be a huge and very tough decision to walk away form your home. Each person must make a decision that works for them morally and financially, but also each person must face reality with a bold & realistic attitude as well. Alternatives to a short sale is a home loan modification as well, but those are many times unsuccessful. Weigh your options carefully & don't make the decision too hastily either. Keep in mind that sometimes the best decisions are not the easiest decisions.
Check out this article from Reuters - Yahoo Finance.
http://finance.yahoo.com/news/what-happens-when-you-walk-away-from-your-home-.html
- Pros: Settle Debt, Move on with your life, Tax Free on the "income" you received thru the debt settlement at the moment,
- Cons: 85-160 hit on your credit rating, Embarrassing, Higher interest rates when you borrow again.
