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The new, age-old question...to just walk away from your mortgage or work through a short-sale. Here is some info that may help you with your decision.

In the State of Florida when you go through foreclosure, the courts automatically award the lender a deficiency judgement. What does this mean? It means that the lender is permitted to pursue you for the balance of the mortgage that you walked away from for 20 years. In a short-sale you may be able to get the bank to forgive the outstanding amount (after sale) when the transaction is completed.

Yes...a short-sale is frustrating and not easy. The paperwork is extreme...but it may be worth the effort. In general, a foreclosure and a short-sale are similar when it comes to your credit score, BUT in Florida, because of the automatic deficiency judgement, a foreclosure is far worse. You may have problems getting another mortgage as long as that judgement remains unpaid...up to 20 years.

Now here's the rub. In a short sale, you are required to disclose all of your finances to your lender so they can make an informed decision as to accepting a short-sale. Now they know whether or not to go after you for the judgement. So just make sure you CAN'T afford your home before making a decision that could affect you LONG after this time of your life!