One or the other? If you go into Foreclosure you will most likely receive a Deficiency Judgement agains you. You don’t want this!!! Or maybe you do, I don’t know you! You should probably speak to an attorney on this matter. Banks have a 5yr. Statute of Limitations as to whether or not they send you a deficiency with in this timeframe. We have found that 20-30% of the lenders will release the deficiency at the time of the approval due to our “personal relationships” with lenders and they will state on the credit report “Paid in full as agreed”. Taking a Promissory Note from the bank at a reduced amount at 0% for 10yrs at $200/mo. is better for your credit than taking a deficiency at any point with in the next 5 years…..But you MUST pay that Note! If you are behind on your mortgage, get professional help. Your financial future depends on it!