Forclosure vs Short Sale

[Mary F.]

I am the co-owner of a home that has been on the market for 3.5 years. The property is a modest home that has decreased in value over that time by over 100k and approximately 30k less than the principle balance on the loan. The co-owner filed bankruptcy in 2008 but excluded the house due to our arrangement. Additionally the house was recently attached for an additional 10k by the IRS for the co-owners past due taxes. Of course the asking price has been adjusted many times but with the attachment at this point it would cost me more than my meager retirement savings to unload the house. I have inquired about short sales but with the attachment that does not seem a viable option. We are current (barely) with payments but am feeling that foreclosure is the the only option and would appreciate any insight or advice from those of you with similar experience or the comments of professionals that deal routinely with same situations.