There are many homeowners deciding whether to file bankruptcy, or to list their home as a short sale and/or what to do.
In the late 80's and early 90's, the banks (for the most part) were not cooperating in the short sale process. Homeowners behind on their payments were eventually foreclosed on. Many long time agents felt that the current downturn would be no different. We all know now that is/was not the case. The widespread default on residential mortgages (2005 to present) necessitated a different strategy than less dramatic and lengthly downturns in the past.
In addition to the bank's strategies, homeowners attitudes (and societies) have changed as well. The decision to file a bankruptcy vs a short sale of a personal residence (or investment property) is now being viewed by many as more of a "business decision" than a "moral decision". Not everyone is in sync with this attitude yet considering the multitude of short sales on the market, its good to examine the situation.
A recent article on Yahoo touched on the options homeowners have when they find they can no longer pay their mortgage(s).
The full article can be found at http://finance.yahoo.com/news/what-happens-when-you-walk-away-from-your-home-.html
If you'd like to make the most of your real estate experience call me today, I will treat your transaction as if it were my own!