It is usually a better option for your credit to sell the house short (for less money than owed) than to allow foreclosure. There are options out there. They are never easy, but there are people who can help - short sale negotiators, realtors who specialize in short sales, and even your bank. In many cases (almost every case I have dealt with personally) the bank will forgive or settle the shortage with the owner. They don't want to own the home. They just want their money (all or some of it). - Sun Nov 22 2009, 11:16