Like I said, you definitely want to check in on the tax liability. You carry a possible tax liability regardless of whether you perform a short sale, go through a foreclosure, or even execute a deed in lieu of foreclosure.

Not many people know this. You may want to seriously review the Mortgage Debt Relief Act. I would advise you to or work with an accountant who is experienced with it.

Pain in the ass shortsales are a pain in the ass but if you have a good agent it makes it alot less of a pain in the ass. Again though, regardless of short selling or foreclosing don’t be blind to the IRS. If you are going BK or can prove insolvency then you are good to go.