What is a short sale? The short answer is that you sell your house for less than you owe-hence you fall "short."

What is the risk of a short sale? The BIG risk is that you will owe the amount short after sale UNLESS the bank agrees in writing to release you from it. Do NOT sell short without legal representation. The only thing worse than selling your house and getting nothing out of it is to then still owe the bank and it is always a lot of money.

What else can I do? In a bankruptcy you can pay off the amount you are behind in your mortgage over 5 years and manage your other debt so that you will be able to stay in your home.

How  do I know what my house is worth? Try to find what has sold most recently.  I do recommend you use a realtor if you need to sell in hard pressed circumstances.

Why should I do a short sale? What do I get out of it?

Not much really. If you only have a problem with your mortgage AND the bank releases the short then you can move on to a rental and no more hassle from the bank. If  you have other debt then you are only fixing one piece of the pie. See a credit counselor and a financial workout attorney before you decide to short sale to see if this is the best option for you.