If you are facing foreclosure or considering a short sale, it is imperative that you arm yourself with knowledge. This decision cannot be made lightly, there are legal consequences, tax ramifications and financial implications that all must be taken into account. Don't let your fear of the unknown rule this decision. I am often asked, "When will my house be worth what I paid for it?" The value of properties is not stabilized, no-one can predict when the market will stabilize, or when values will improve. Under "normal" circumstances, appreciation is approximately 3% per year. Using this 3% example, a property purchased in 2006 for $200K with 100% financing now valued at $100K, will take 23-24 years to get back up to a $200K value. Of course, the loan amount(s) will have gone down during that time. The "break-even" point (where value is high enough to sell the property and pay off the remaning balance(s) as well as cover the costs of the sale) will not be until 2022. Do you have 12 years to wait? Just to add insult to financial injury, assuming that the 1st is a 6% 30 yr fixed rate and the 2nd is a 8% fixed rate 25 yrs, the total amount of interest paid on these loans by the time 2022 rolls around is: $139,430 on the first (just the interest) and $53,370 on the second (just the interest). So you will have "invested" $268,199 (principal & interest) for a property that you are scraping out from under.  Please visit my other website www.LasVegas-ShortSale.com for more info.