How to get out from underwater ethically?
I'm new here...Our house is underwater by more than $200k. There's no sign of it being anywhere near what we owe on it, let alone 20% over in order to refinance in 3 years. Yes, this was a 100% financed, 7 year locked ARM with a 15 year second.
To say the least, we want out. We made a good financial decision and can still afford the mortgage. Foreclosures have brought down the prices drastically. Why should my wife and I be punished for bad decisions others made? This was out of our control!
So, the deal is we can afford to purchase a second home that would be bigger and much cheaper. I just don't want to dump the underwater house, but we couldn't even get half of the expense of it from rent. So what can we do that is ethically right to get out of the first house after we buy the second?