I think many people feel that they over paid a few years ago and the houses certainly are not worth what they were. Unfortunately, in the old market people had no worries about over paying and they should have. I know it is a hard pill to swallow, paying for something that has lost its value, but you agreed to pay your mortgage when you bought the house. If you are not experiencing any hardship then you need to continue paying and eventually the market will turn. That is not to say, you will gain back all of your equity quickly. Before the last boom, you need to stay in a house 5-10 years to see a gain and it looks like we are back there again. Foreclosures and short sales are becoming too easy for people. People need to start taking some responsiblity for their decisions. I am not saying that there not are bad circumstances and I agree a short sale or even a foreclosure can't be helped but it should only be for those certain cases, not because you feel you are wasting your money. In the past, I have felt that I overpaid for a new vehicle when I saw how fast the value declined. However, I agreed to pay my loan and I paid it. I think if it is only a situation that you feel that you made a bad decision, you need to live with it and pay back your debt until you can get out from under it.

It is hard to give a truly helpful answer without more details.
Do you owe more than your home is worth right now?
Can you make payments? Have you been making payments?
Have you spoken with anyone at your bank about your issues?
As mentioned by another person, there is the possibility that you could do either 1) A Loan Modification on your current loan or 2) Refinance your home, possibly at a lower rate.
If your home is not worth the value of your mortgage, there is also the possibility of selling your home as a "short sale", where the bank may accept less than what you owe them on the mortgage. There are many ramifications to a short sale, so you will want to make sure you get a real estate professional who understands how to work with the banks with you. I have someone who is wonderful if you would like a consultation.
Good luck, I hope this information was useful!
Sincerely,
Marney Kirk
Keller Williams Excellence Realty

That's right, you are not in any financial hardship. . . but you may still be able to convince the lender for a loan modification that you can do yourself. . .

When you bought your present property you made a promise to pay to your lender. If you are not in any financial hardship, you might consider "riding out" this decrease of value stage in real estate. Or you might also consider talking to your lender and see if your present interest rate can be lowered and therefore lower your monthly payment.
Historically real estate value always come back up. So hang in there for a few more years and your patience will be rewarded.

Not having details makes this a shot in the dark but here is what to look for. If you feel that the property is adversely affecting your life, then short sell it and walk away with a hit to your credit which will recover because you said you have good finances. Otherwise, get another job or decrease your quality of life and put more money towards the principal each month until payments are manageable.

You would be jeopardizing your credit for other purchases. If you got a loan you would certainly pay a higher interest rate. It would be many years before you could buy another home. You would loose your mortgage interest and property taxes deduction. Many thousands of dollars.

On the moral side you would be breaking your pledge to repay. Your word is no longer your bond.

L.H.
Michigan

YOU CAN CHECK WITH YOUR MORTGAGE COMPANY ABOUT REFINIANCING WITH A LOWER INTREST RATE. OTHER THAN THAT YOU WOULD BE RENTING AND GIVING YOUR MONEY AWAY TO SOMEONE ELSE AND NOT BENIFITING FROM THE TAX WRITEOFF.