So, I got the paperwork from the mortgage company about the foreclosure that I need to do my taxes. The fair market value of my house? $55,000. Purchase price in 2001? $99,000.
As is being reported in the press with articles like"No Hope In Sight, More Homeowners Walk Away", the market is wrecked, the modification programs are not working, and it's a big mess.
When I play with the "Does It Make Financial Sense To Walk Away And Rent?" calculator I get an estimate of 30-50 years before I regain equity, depending on the variables I put in. It was right to walk.
Now on my reading list, although I've done pretty well so far--Life After Bankruptcy: Living Well With Bad Credit.