<prompt> Human: Edit: Thank you everyone for your input. This helped me understand more. My idea was always to discuss this with a professional before making any decisions, but you helped me be more clear on some outcomes. I appreciate the help!Im not sure if this is better suited for here or rlegaladvice, but Im more interested in what will happen to my credit and such than what laws are involved. So Im posting here. This is long so TL;dr at the bottom.About 8 years ago I bought a house for 122K with 0 down on a fixed 33 year loan through a special program where being low income meant I didnt have to put anything down but also wasnt penalized for doing such a thingso no mortgage insurance, etc.I was a single mom making a 400w salary in an area where it seems pretty much everyone is on government assistance for food and housing. I was no different. It seemed like a good idea, I was very young; and my child was needing to start school and our current district was terrifying, we lived in a really bad area. I wanted to be in a good district and the house payment was surprisingly less than rent payment for the district, by a little.The house is a one story on a slab and after living in it a year I realized it was overpriced. Workmanship was crap and I learned everyone in the neighborhood had to put in thousands extra to fix what the builders had done, these were new construction. The builders filed bankruptcy halfway through the subdivision and moved out of state.Then the house flooded, twice. I found out the house had flooded at least 2 times before I bought it. I discussed it with a lawyer and we are a buyer beware state, so he said that I was SOL.Spent money I didnt have to get a professional company come out and determine the issues and fix them, but it turns out they are not fixable in the current situation. My house is basically sitting in a retaining pond that shouldnt exist.The company I hired did what they could to basically dig trenches in my yard to help keep the water from getting in the house, but the garage still floods on a semi-regular basis, my septic tank constantly fills with rain water because it is right in the lowest area, and weve been mostly in a drought for the past 3 years, so I have no idea if the work will actually save us when the real rains come.So weve been living as if water could come in at any moment. We keep everything up on blocks, there is no flooring, just rugs on concrete that can be hung to dry. Everything is attached to the walls to keep it high and if it rains we run around the house making sure nothing is on the floor. If it is a heavy rain we turn off the power breaker and go to my moms house until it passes. We just pray on the drive home we dont return to a mess.Its a terrible way to live. Ive also had another child and have serious health issues and just feel like Im drowning in the constant unease.Current payoff is 110K. I could maybe see someone buying it for 60-70K and trying to do something with it. A lot of the houses in the neighborhood are foreclosures and are being listed at 90K, none of them have the problems mine do. So if someone would actually buy this place, Id still have a lot of debt.My mom keeps telling me I should just walk away from it, but I cant imagine what that would do to us financially and to my credit. I could really use some help understanding.TL;dr still owe 110K on a 122K house that flooded twice and is maybe worth half that. What would happen if I walked away?  <response>: Short sale? List, sell it for what you can get - 40 - 50k? And get the bank to accept the offer and forgive the balance. Less ruinous than abandoning it. 