YES, crime really IS that bad in Waco; 11 robberies in 11 days was reported in last Friday's paper, and then on Monday, they reported 3 more that weekend! My Motorhome was stolen, it was PAID for, and Waco PD refused to even take a report, said to "Call my bank", I did not owe any money on it, so how could calling my bank help me? Every time I pick up the paper, there is another child raped and/or molested - even the grade school teaxhers and coaches are the guilty ones. I could go on all day, but that should give you the idea.
I will have to sell my house in Waco for whatever I can - My child's safety is FAR more important than any house or money!!! Houses in Marlin, are CHEAP, lots of forecloures are available, and the banks are willing to deal with you if you give them an offer. I got a REALLY good deal, on a NICE house in a NICE safe neighborhood!!
Can you try to buy another house before you sell your current one? If so, that way it would not affect your credit score until AFTER you do the Short Sale, and you would not have to wait the 2 years or more to be able to buy another house, and you would still get a low rate today. I mean buy another one now, and then do a "Short Sale" later - OR lease it - even if only until it sells.
If you are a Veteran and are eligible for a VA loan, that might help you get out of WACO! My child is now 9, and everytime we go to Waco to shop, and return home, she says, "Well, Mom, we made it out of there ALIVE, one more time!"
I will keep you in my prayers and ask God to help you find a SAFE home you can afford. God be with you - Susan
Any time you ask a lender to accept less than you agreed to pay, it will affect your credit. IF values have dropped drastically, and IF you can demonstrate genuine financial hardship, then a lender MAY consider allowing a short sale. Their acceptance is never guaranteed, and getting approval has gotten more difficult.
You may be better off putting a renter in that house (if anyone wants to rent there) and moving your family to another place. If your agent isn't giving you these kinds of options, you might ask why, and maybe find an agent who can look at the big picture for you and not just the next deal.
How much we don't exactly know.
I am shocked there is that much crime in Waco that you need to move?
That suprises me.
Any chance you and the neighbors can get together, start a crime watch and improve the neighborhood?
I would try to meet with your CRO at the police department. Maybe they have ideas for bike patrols, increase car patrols, etc.
Another option is a deed in lieu, where you basically give the house and keys back to the bank. Whatever you do, Texas is a recourse state, which means if you sell it for less than you owe, the bank could still sue you for the remaining balance.
And like Don mentioned, you still have to declare the money as income.
The Short Sale most certainly will affect your credit rating. The amount will be determined by the settlement you make with your lender(s). As a Seller, this is not about selling your home, it is about settling your debt. The sale of your home is only a part of the settlement.
You can read more about Mortgage Forgiveness Debt Relief Act and Debt Cancellation Act at the following address: http://www.irs.gov/individuals/article/0,,id=179414,00.html
Best of luck to you.