Hi all I was hoping you could help. I plan on filing for a chap 13 when i have enough money saved and was planning on letting my house go into FC due to economy health probs... But now I am not sure the FC part is the best idea.

I originally requested a loan mod with the lender (Suntrust) and well it really was not a good option they told me at that point that if I did not except the mod I could do a deed in lieu of FC. When i called back to start the paperwork for that they then told me in order to have that option I would have to try to do a short sale first. Long story short my family and I have moved in with my parents due to some health issues, but I still care about my house and my neighbors. I can not do the deed in lieu and the lawyer for the lender has no plans on doing anything anytime soon. So I am thinking about trying to do a short sale on it.

I am really wondering though what are the true ins and outs of a short sale? Had 2 mtgs both with Suntrust, first and Heloc which has already been sold by Suntrust to another company. The house is worth probably about $75,000 and first mtg alone is $132,000. If the house were to sell would I have to pay taxes on the difference?? Are there any other things you all feel I should know? How do I go about finding a good real estate agent??

Please any advice would be great i have no idea about any of this but I can not stand just to sit there and watch the house get over grown or destroyed while the bank waits to FC.

Thanks so much!