Pay or Walk?I bought my house four years ago at the peak of the market for 250k. My stated income is considerably less than what I actually make, so I only qualified for an interest only mortgage. Part of the agreement was that I could not refinance for at least 3 years. Not a problem, since I would pay on time, establish myself with the mortgage company, and refinance when allowed to do so. Well, obviously over the past 3 years, the market has crashed and my home is now worth 150k. I have contacted my mortgage company regarding refinancing through a help for homeowners program or any equivalent. They responded by saying that I can't afford the home. Funny they should say that as I have never been late on a payment. The representative told me that I was within $100 of being accepted, so I filled out the refinance package again crunching numbers, writing my sob story letter etc. and again was told that I can't afford the home. So my question is, should I just stop paying and foreclose on this house and start fresh in another 5 years or should I keep paying interest only for the next 3 years when my 7/1 arm matures? Is there anyway for me to refinance now? I'm sure all of you experts are tired of hearing this same question being asked 50 different ways, but any input would be greatly appreciated.September 28 2009 - Gloucester00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.