[dfwgator]

The only problem with that scenario is most of these people would actually lose money because they would have to sell below market and probably for less than they owe.

That's called a "sunk cost", it most likely will never be recovered. You should not factor in what you are losing in your decision, only in the impact of cash flow going forward.

[Bigh4u2]

“You should not factor in what you are losing in your decision, only in the impact of cash flow going forward.”

The problem is, many of them have no ‘cash flow’ to begin with, hence the ‘loss’ of selling the house.

How do you qualify for a lower mortgage if you can’t meet your current one?

My wife and I have even discussed selling and moving to another area. But with the housing market being as week as it is, we wouldn’t have any money left over to buy another house. We would just about break even.