Legal Question in Real Estate Law in Georgia

You need to see a lawyer before you make some huge mistakes.

If your house is foreclosed on a lender can sue you and then garnishee your paycheck and bank account in some cases.

A short sale can have hugely bad tax consequences. Depending on information you didn't give you could have other options.

Your best option is, by far, to stick it out and pay the mortgage even if that means cutting back on other expenses. Of course there are many negative consequences to all the options you mentioned and especially for bankruptcy (the "other options"). You are in much better condition than most people who are in trouble, based on your post.

Nobody can garnish without first suing you and getting a judgment. But with your income, why in the world would you let come to that? Consult with a local attorney. Your enentire situation needs to be reviewed.