Giving up the dream.......

[SuzieQ]

Hello everyone,I have been spending lots of time here lately and want to Thank everyone who makes this place available for all of us I read so many sad stories and I am convinced this "mortgage meltdown" was designed to fail and hope in the end a class action suit will bring the guilty to a courtroom.My story is such: In Feb. 2001 we closed on this property located in Antioch, California for $287,000.New construction purchased through the builder. A couple of refi's later we are now at $411,000 and rising. I have a neg am, my payment is $2300. I am currently 2 months delinquent. Wachovia will not modify my loan (history of late payments) and will not accept a DIL (not for anyone). The only option I have left is a short sale. We have had a reduction of income and basically cannot meet our obligation due to rising costs of fuel ($800/mo) for the commute 120 mi daily for a F-350 diesel eating truck and of course all the other expenses to operate a house and family of 4.7 years of payments, sweat equity, and improvements gone. Value per tax assessor's office is $340,000. That is a false value. I would be lucky to see a buyer bring $320,000. This area is very hard hit with foreclousures, bank sales and house's better than mine are not selling.My question is: Will I liable for the deficiency? What if it won't sell and the foreclousure goes will I be liable to the IRS?Thank you all,Cristina A.