[Hugh R]

I'm 57 and would not want to co-sign an underwater mortgage for my 25 y/o daughter if she had a mortgage. I have too much riding on getting to retirement.

Think about it this way, they could afford it then and apparently they can still make the $5,000/month payment. What they don't like is that its not appreciating like they hoped. LA real estate will come back, especially in nice areas like Highland Park. They should just hunker down and pay it. I know people who lost a lot of value about 20 years ago in LA when Lockheed left, they were underwater for a least a decade and even in today's market they are up.