Hello all experts.

I own a townhome in Richardson, TX and in process of building another home in Allen, tx which I should possess in Jan 2013. The reason since we are planning on expanding our family + low interest rates.

I did put my current home on the market for sale but after 120 days of no concrete offer decided to take it off the market. Also my understanding is the longer the home is on market provides it offers people with greater negotiation leverage. Not sure if this was good move by anyway decided to go this route.

My next move is to put home as rental since the house is in great location and based on subdiv renting history shows a positive trend. What I would like to do next is put forward different thoughts and would appreciate all you experts to provide your feedback if any.

1) If I decide to go renting route what type of lease should I offer? Should I do a lease to own? Any other rental instrument options?

2) Post moving to new home if I realize renting isn't my cup of tea... so would absolutely prefer to get rid of home but because selling isn't producing the results so what if I decide to do a short sale. My second home will be a homestead so it will be protected from creditors and since first home is indeed underwater (owe more than comps) will bank agree to short sale? What kind of tax implication am I looking at in 2013? Will the forgiven amount be taxed? Anything else I need to know? Can bank go after my financial assest (based on what I provided during loan app)?

3) Post moving to new home, one option is a refi on first mortgage to lower payment. Is this a good move? Is there any loan modification possible on first home mortgage? Or any other refi option available to lower my first home loan?

Any advise would be appreciate and if I am overlooking any kind of relief applicable please do add.

Thanks,