There is quite a bit for you to consider in selling your home, especially given as you have stated that you owe about $30,000 more than the home is worth. Depending on your particular circumstances you will want to contact your lender and see what options they may have for you. If you are current on your mortgage and have the financial means to make the payment, it is very unlikly that the bank would approve you for a short sale, however, you may be able to get a mortgage modification. You have not indicated why you would be looking to sell your home and purchase another. That of course is something else that needs to be considered. If you are looking to downsize or lower your payments, you are best served to talk to your lender about your options. Depending on the value of your home, the $30,000 may not be such a big impact and as the real estate market starts to make a comeback, you may find that you are no longer upside down on the property. As has been indicated before you will also want to discuss this with an attorney as well as an accountant to know what you need to be made aware of depending on your particular financial situation.