If it's Arizona, and your primary residence, and under 2.5 acres, supposedly, you're not liable for any of the mortgage, should it foreclose. Supposedly, if it forecloses after 9-30-09, and you haven't lived there for 6 months in a row, you will be liable for the difference between what they get out of it when they sell it. But, I've heard that it takes a good 6 months, between when you stop paying, before it's foreclosed, sold, and then you're evicted. Supposedly, the law says now that you have 90 days, at least, to get out, once told to do so.

As you may or may not know, Zillow's values can be way off in certain areas. If you would like to know the true value of your home (comparing your home to what recently sold and what the active listings are) let me know and I will be more then happy to run a comparative market analysis of your home.

Also in regards to your credit question, your credit of course will be "dinged" either way. A short sale takes less of a toll on your credit then a foreclosure does. But either way, you will have to have your credit worked on if you wanted to purchase a home within a few years down the road. There are a few lenders that have a "seasoning" requirement in regards to how long it has been since you had a foreclosure or short sale before they will give you financing.

I am a local real estate agent and mortgage broker so I would be more then happy to answer any of your questions.

Mark Maly
Gentry Realty
The Mortgage Store
602-686-3348 Phone
markmaly8@Hotmail.com

Bill,

Rest assured, doing a short sale or foreclosure will affect your credit rating.......... but you will be able to buy again.

Good luck,