Question about Mortgage/Foreclosure

[nomore008]

We cannot afford our house on my salary alone. I was hoping for a mod but doubt that will happen before we file BK or ever!! It would have to about half of what it is now. We are good about having to surrender the house.
The county values the house at 170,000, we owe 162,850... however when my husband got home from the hospital we had a realtor to talk to us about selling the house (this was about 8 months ago), in her professional opinion she said that we should list the house at about 155,00. (You can buy bigger ones with a one car garage for less than what we paid for ours 2 years ago.)

Do you think that they will think we have equity in the house?

Thanks for your thoughts.

[SMinGA]

Probably not - if you can't sell it without having to pay $ at closing, and you know you can't afford it, probably best to just let it go in the bankruptcy. If the trustee thinks it can sell for more, and tries, it won't cost you anything.

[goodyphilips]

I don't think it is prudent to short sell the house with deficiency staring at you after that. going for bk is the better option considering the situation you are in.