should I do a short sale on this house that has 70 grand of negative equity? (bought when market was high.)?

Answer 1

Only if you NEED to move. If you want 'out' simply because market values are dropping, that's not a good move. A short sale has many negative consequences, including the potential of a damaged credit rating and a 1099 from the lender causing you to claim the shortfall as income for the tax year involved.

If you do not need to move, tough it out and wait for the market to rebound, which it inevitably will down the road a few years.