I have a second home (investment) which I can't keep up with the payment any longer. My loan balance is about $270k but the Condo is probably worth $200k. I am currently not behind payments. I have always had good credit but since my wife is barely working. My cash flow has dwindled and its stress time.

1) Should I short sale the property and if so, what does that really mean?

2) If I short sale, who do I talk to first (lender? Lawyer...?)

2) Would any of my other assets (1st home, car, 401K, mutual funds, salary...) be taken away?