For instance, what is you have equity in a vehicle, motorcycle, other real estate, etc....or what if your credit is still strong enough to get a personal, unsecured loan? The point being...take your time and look at all your options, not just the option an agent wants you to see. There are consequences to short-selling a home...not nearly as severe as allowing it to be foreclosed, but consequences nonetheless.
You should look into http://www.ncforeclosureprevention.gov. If you are not able to stay in your home, you should find an experienced short sale listing agent. Your lender should be able to work out terms on a short sale including settlement and/or discharge of debt - especially if you are willing to take back a personal note. You should see if you qualify for a HAFA short sale http://www.makinghomeaffordable.gov/programs/exit-gracefully Short sale will provide an opportunity to settle your debt, foreclosure will not. If you appreciate an answer, please give thumbs up. For the most helpful answer, please say thanks with a best answer click.
You need to look into so many Government programs that will help you stay in your home.
Your loss is minimal amount of $10K.
Personally, I think any short sale where the value falls under $25K is not worth the damage to your credit. Even if you owe nothing on other mortgages, car loans, or credit cards, there is always the possibility you will seek new employment - and a short sale may make the difference.
There are always exceptions, but in Miami, we're seeing appreciation in the housing market, so if you can make the payments, you want to make sure that you're not going to suffer the credit damage unnecessarily. (The math in Jacksonville, NC will be different.).
If you can at least cover 90% your mortgage, consider leasing out the property.
Call me if you would like to discuss what options you have as a seller. I have a Certified Short Seller designation with experience in this arena. Avoiding foreclosure is key. I am here to help. My number is 910-358-2498
Century 21 American Properties
Broker in Charge
Triangle Home Crew Realty, LLC
I'm with Century 21 American Properties West and can be reached at 910.489.3102.