Should I short sell or let my old house go to forclosure?
My job transferred me to another state and my old house would not sell in the slumped market. I was not able to make 2 house payments so I chose to rent at the new location until the old house sold and came to realize that rent is a house payment also. I chose to let the old house slip behind in its payments so I could stay in good standing with my new landlord, but that ruined my credit score. A short sale offer came in at about 75000 below what I owe and foreclosure proceedings have begun. The bank said the difference can be handled in two ways: 1) they could hold me responsible for the difference and provide me an interest free loan for the remainder or 2) tax it on a 1099-G. I am now flat broke because I used all my savings to try and stay afloat and do not have the means to pay those kinds of taxes. As I understand it bankruptcy will not forgive taxes and I am on the verge of bankruptcy. Are any of President Obama’s plans able to help me in this matter? Should I let it go to forec
