Mortgage deficiency

[Vivian Jackson]

Live in STL, Mo, house is in Jax, FL. Had to move due to layoff in 2009 from Jacksonville. Due to many things, I'm now behind in payments (have renters) but there is always something wrong (air conditioner) for repairs. I've yet to receive a full months rent unfortunately. As of March 1, I stopped paying the mortgage. The bank says I will have a mortgage deficiency of 48-60k. I bought the small 1500 sq ft home for 179k in Oct of 2007. I think I have 12k in equity this was a 100% finance. I had an offer for 85k for the short sale. The bank said this morning they are still deciding on what to do (which means they will probably take the short sale, compared to foreclosure)

But how can I get out of the mortgage deficiency? Or can I? I can't pay back this huge amount that they want. There is no way. Can they garnish my wages? I don't' have any assets, two cars that I'm paying for, I bought another house in March of 2011 for way cheaper (this time if one of us gets laid off, we can afford the 750/mnth payment) How can they come after me other than a collection agency? what are my options? I have a lawyer picked out in Florida, but I just don't know what to do. Can I just not pay it and it goes off my credit after 7 years? It's either that or I claim bankruptcy I guess. I'm really at a loss, so I'm looking for some ideas from the group here.

thanks