[turbo6bar]

Put me in the minority. I personally would never get myself in that mess, but I don't blame a person for walking. The banks and credit bureaus have made it too easy to walk. There is no penalty for this action. Those fuchers (lenders, investors, etc) quest for profit at all cost overrode all caution. If we are unwilling to hold Wall St liable for their mistakes, we shouldn't punish the individuals. Besides, the lender's remedy is taking possession of the property and obtaining a judgment against the borrower.

Ethically, I believe it is wrong, though. On the other hand, some individuals flew too close to the sun, took unreasonable risk, and cannot afford the mortgage. Why should they garner sympathy and understanding for being unrealistic and overoptimistic?

Folks, we're going to learn the definition of moral hazard the easy way or the hard way.

Rick Lee, I do believe they will consider your VA property an investment property, in which case you will need at least 20 if not 30% equity for a refinance or government assistance. Unfortunately, the "IS now a good time to refi?" threads are little solace for the investor. If there's nothing holding you to AZ, consider moving back. I am shooting from the hip.