I am a Las Vegas homeowner. I bought my home in 2006 and refinanced it in 2008 to a conventional 30-year fixed loan. I owe $178,260 but my home is only worth approximately $60,500 according to zillow.com. I have resided in my home ever since I purchased it. I have never missed a payment. Bank of America (my former lender) sold my loan to M&T Bank (my current lender). I am single and I earn $65,000 a year. My total liabilities exceed my total assets by about $40,000. I am thinking of doing a short sale. I have read that the Mortgage Forgiveness Debt Relief Act expires at the end of this calendar year. Do I qualify for mortgage forgiveness/debt relief? If my debt is canceled, can my lender still come after me to recover the debt?
Chapter 13 Bankruptcy Attorney
You do qualify, if you are a primary homeowner, and please remember this is ending on December 31, 2012. However, I suggest to see a licensed attorney in this regard. A short sale can become complex, if there is more than one lien holder attached to the property. Also, the attorney may analyze your situation to see if you are qualified to file bankruptcy to get rid of other unsecured debts.
Only see a licensed attorney before you make any decision. This answer may not be perfect in any given situation