IMHO (Being a current FB myself) if I wanted to protect my credit I would have kept current on payments and then did a short sale. But then I’d have good credit and no down payment vs. not paying mortgage to save up before getting kicked out, so I have elected to go the foreclosure route for primary residence. The wife will have to qualify for the next place on her own, with a hefty down payment.
UrbanR has a good point on the “pain in the ass” of a shortsale, I’ve heard bad things from friends.
FYI: Bailout bill extended the mortgage debt relief act till Jan 1 2013.
