A small investment in gasoline and a pack of matches would be my recommendation.

Stories like the above really kill me. It is so unfair.
The only way the housing "market" recovers is if salaries double in the next year. If that happens - maybe there are some ignorant first time buyers out there who will buy rowhouses and townhouses for over $250,000 (which is a quarter of a million dollars by the way). But with the brilliant REPUBLICANS in control now who want to CUT government salaries - how will salaries double? They won't.......I just feel bad for all who were suckered into buying houses in the last decade (like myself). Realtors (like that joker Craig Northop), bankers, politicians...they all were selling us TULIP BULBS!!! That darn Northop even had the gall a few weeks ago to say this was a great time to buy a house. It is a great time to get swindled is what it is. Buy now - be more underwater every day for the next decade at this rate.

If you're job situations forces you into moving - than I would recommend looking into renting your current home and hope things become more manageable in a year or two. It's hard to believe they could get much worse.

My advice: jump off of the Titanic now before it's too late! Think about getting a loan to pay the difference and get out while you can. Waiting is not going to help your situation unless you plan on waiting at least 10 years or more. The housing market has been the biggest ponzy scheme ever played upon hard working Americans. I have come to accept the fact that the value of my home will likely fall to 2000-2003 levels. We will all be able to stop obsessing about the housing market/the value of our homes as soon as we are able to accept this.

The only thing that really "burns my cookies" is the fact that all of the greedy bankers who designed this mess have gotten off scot- free. I really sometimes wish that Americans would act a little more "European" and protest! The bankers should all be in jail or at least tarred and feathered.

Jaded,
Americans will not protest as long as the welfare benefits allow them easy access to food and cable so that they can watch Dancing with the Stars while eating high-fat high carb foods, and have money left over to get a neck tatoo.

Let's remember that mortgage interest is deductible---and that you pay the bulk of the interest before you pay down the principal. Everything else being equal, they are quite likely paying several thousand dollars less per year than if they were renting.
Pity the poor Canadians who don't have this perk.

I am sorry I can't be of any help, but why buying a house if "moving around quite a bit"?

Darwin Rules...That comment was absolutely hysterical!! I had to read it to my wife, who also thought it was very funny. Especially loved the "neck tattoo" reference.

Adam B.- Your comment is nonsense. All the tax deduction does is drive purchase prices higher. You dont save any money by having the deduction. THink of it this way. If every month i agree to supplement yours and everyone else's mortgage payment $300/month. That just means that all houses and their purchase prices go that much higher. The only way the deduction would be a true windfall is if you were the only one that could claim it and not other homeowners.
HIgher home prices drive higher property taxes. The mortgage interest dedcution is just another sham that the sheeple fall for.

Just walk away and call it a day. You can still buy a home in three years after the foreclosure sale. A loan modification will serve no purpose when you need to sell. A short sale is basically the same thing as a foreclosure anyway. At least with a foreclosure you can stay in your home for free for at least a year. Go that route and save as much money as you can. Just let it go. Being over 40% underwater is a waste of money. You have the right to walk away. It is in your contract. The bank takes the house. That is their right. There is absolutely nothing a "low bono" attorney can do when you are current with your mortgage. You will only get some help if you are in foreclosure. Good luck. I hope you make the right decision. I know what I would do. It isn't an easy choice to make, but it certainly is the right one, especially if you plan on moving soon. Get that Debt Forgiveness Act before it expires. If you wait too long, you will have to pay income taxes on the difference.

I tried to refinance and since I do not have at least 5% equity in my house they said no. I just wanted to take advantage of the low rates and was turned away because I am current on my payments. I told the women, "so let me get this straight, if I start missing payments then you can help me?". Her response, "Yes". Thankfully I do not have to move, but if I did, I would be in some trouble. I feel bad for the people that have to move and try to work with there banks to figure out a solution and are told to piss off.

I was in a similar situation...After burning through my savings, and then my retirement, trying to save a sinking ship (my Titantic), I got advice from a family friend who is an attorney...Then three more attorneys - They all said the same thing, "Walk away!" The banks do it, NAR did it...Corporations do it all the time. Look out for your best interest, and remove the emotional tie from the home and your credit score...Those things, in the scheme of things, really aren't as serious as being broke and never being able to recover, throwing good money after bad!

I hear that the end of the mortgage interest deduction is being discussed as a way to save on the deficit...If this goes away, what will be your incentive to buy? Especially if you move around a lot. It would be like gambling.

I am happily renting now, and I will never buy a home again! NEVER! It is the biggest set up out there, and the way the economy goes, you anchor yourself to a property, and if things change and you need to move...you can't.

C'mon guys. Real estate is so 2005's. It's almost 2011 and who cares.