I bought home about 2 years ago for 570k now price have dropped to 470K or less. I hove no more power to pay for this home. I stop my pyments. What is better for me Foreclosure, Short Sale, or Bankruptcy and how it will be effect for me? I will be need to pay difference ( about 60-70K) between sale price and my debit or no? It is not my fals about dropping price on real estate market.

I am in the same position. I made some inquiries today re: which was best. I learned that with a short sale, or deed in leiu of foreclosure you will have to pay taxes on both of these. Either way you go, it's going to effect your credit score, so I have decided to walk, file bankruptcy, go to a warmer climate, get a nice tropical apartment and enjoy life.

The short sale will be a sale, and does not effect your credit like the other two. But the lender will have to agree to a short sale, and I am not sure they will accept one that is 60,000 short.

I have a friend who is trying to settle one that is 4000 short and they are not accepting his.