Roberta, Your question should NOT be what can you get for the house - your question should be:
- How would doing a short sale affect my credit score?
- How long will the process take?
- Can I continue to collect rent during the short sale process?
- Can I avoid a deficiency judgements from 1st and 2nd TD holder?
- What happens to my capital gains deferments since this was a rental?
These issues remain the same whether you sell at $300,000 or $400,000 - by definition, on a short sale the seller receives NO PROCEEDS - all the money goes to the creditors.
I will send you some info and follow up in a few days. Bill Mota 626) 233-0190