Hi,
First of all, I want to thank everyone for providing help and insight. Many of us lack the knowledge and experience in dealing with these issues.
I've read most of the posts here and found information relevant to my situation but everyone's situation is slightly different. Here is how mine goes:
As of 2008, I had 2 properties: one in California and another in NV. In 2008, I had to sell the property in NV via the short sale process. However, Bank of America, the lender, did not approve the short sale unless I agree to pay $20,000 over the next 8 years with no interest.