Obama announces new housing refinance plan

[zipplewrath]

5. Many scenarios

There are all manner of scenarios, but it only seems a few are worthy of short term loans. Truth is, as you suggest, if you are WELL underwater, it isn't clear that you have much incentive at all. You'd at least be taking a heck of a risk. Someone well underwater doesn't have much to lose so to speak, so walking away makes more monetary sense. If you are just a little bit underwater, it probably is still worth it to refi. However, it is still a bit dubious to refi for say 15 years. Get the 30 year, and make double payments or something. And that's probably only if you think you'll actually end up owning it.