So you want to buy a house at the low prices and sell the one you agreed to buy at a loss to the bank? Who are you? Do you all not get that WE are all paying for these horrible choices - the ones made by the "subprime" world, Wall Street??? And now we would be paying for yours too if you bail on your house and you criticize the people that made the mistakes that got us into this mess? Why are you any better?
I am reading the responses below and am appalled. So you choose to buy a house, you shopped for a good loan, you talked to a Realtor and asked appropriate questions about the market and listened to Alan Greenspan say there was no housing bubble. Then the market starting tanking and you think everyone else should have known this was coming??? Noone questioned it all when pricing were going up and your 401K was going up. We just bought more and more and more and thought it was our American dream. What difference does it make what your house is worth if you don't have to sell it? You have no responsibility to pay your debt back because your house is worth less than you paid/owe on it????? Hello, look in your garage at that car you own. That is ALL of us - me included, on all 4 of my houses. So let's all give our houses back to the bank? SERIOUSLY? So if your house had gone UP in value, would you have paid the bank MORE for it? Who said your house was guaranteed to go up in value?
People, just sit tight and pay your mortgage. There is historical data suggesting that it is not unusual to see Real estate go up and down in value over time. If you have to move, rent it out and rent another house or rent out a room. The market will likely rebound in time. And if you keep paying your mortgage the balance goes down. In the meantime, take some personal responsibilty here. What a crazy sense of entitlement we all have in America. If you lost your job, deliver pizza's/find any job you can even if it is beneath your standards. Maybe a stay at home spouse has to get a job, maybe you need a 2nd job, cancel cable, eat at home, buy generic, grow a garden, no vacations, carpool, sell your unused stuff, get rid of the SUV payment and buy an older used car in good shape, negotiate with your credit cards, not your HOME. Watch the Dave Ramsey show.
This isn't STUPIDITY, this is life. If you foreclose or do a short sale, it is unlikely you will be able to buy another house for about 3 years. Banks have caught on to the bright idea of buying and then letting the other house go, they are looking for this now. Your credit is ruined. All your other interest rates on your debt is likely to rise. You will be renting anyway. Then you will see the house you let go rebound in value and you will be kicking yourself. America - let's grow up and take personal responsibility. For all of you that are paying your mortgages, thank you. Because of you, we will get out of this mess sooner!