Find the best financial services for you at: SMARTFINANCESOLUTIONS.NET - Walking Away vs. Short-Sale, Which would be best for us? - We were victims of predatory lending during a time of extreme medical hardship. This caused financial devastation and though the lender is being investigated it's been a year and we are seriously behind on our payments. We owe about $420,000 and the house is worth about $250,000. My husband just spent 5 years having two total hip replacements and now can't find work, he has no income. We filed bankruptcy and foreclosure is probably going to happen any day. We want out but want the least possible tax liability. Our credit is already ruined.