Hello Mr. Freedom:
A wonderful question for a lot of folks in this hardship market. Actually, when it comes to short sale then every bank is different. In your particular case where your mortgage is with Emigrant Bank, it will definitely be harder than a lot of local banks. And in short sale you must need to show your hardship as other fellow agents have described below & after a long wait of 3-6 months, sometimes longer - you don't know whether the bank will come back positive or not. Short sale will also effect your wife's credit - not as much as a foreclosure does but still it will. If you have a stable income and just wanted to sell the house because the market price has gone down, my fair advise would be renting it out as you plan to move to a new house.
Instead of refinancing, consider loan modification where you owe the same amount but have lower interest rate. If you are currently not working with a Realtor, I can surely meet with you to discuss your options, the comparable and pros & cons of renting / selling.
Wishing you all the very best!!
Faiza Alvi - RealtorÂ®
Prince William Realty, Inc.