Should you short sell your home?  That is a personal question.  It depends on your situation.  Did you over borrow and plan to resale for a profit? If so a short sale may be your only recourse.  If you just fell on hard times and your home I getting foreclosed I would work with the bank to keep the home.  If you have otherwise good credit then you may be able to refinance at a lower interest rate and lower the payment into something you can afford.  The best way to go is a personal decision and you need to know your options. Hope you can have a Home For Life.