Underwater mortgage what do you do with a situation like this?
I have a mortgage that is 82,000, with the 6 foreclosures on my street my home is now worth 39,500– What in the world does someone do in this situation. The home I purchased WAS in a great area, 1 yr after purchase the town built 2 section 8 apt complexes, closed down the school district to the south and sent them all to this district. In other words I bought the house in 1999 and in 10 yrs the city went to the dogs. Now what are my options- I dont want to rent the house (that is a sheer headache), I had a loan modification (to avoid foreclosure)done last yr @ 4% interest but that resets to 8.5% next June and I do not want to pay that. What the heck is to be done here any one have an idea– I know I am not the only one in this boat. Thank you for your help.