To foreclose or not to foreclose?

I am sure almost all of us who bought a house 3 or 4 years ago have asked ourselves, "Should I just walk away?". Tell us your situation and what you are doing or have done in this mortgage crisis.

Were Foreclosure By Any Other Name Smell As Bad

What if everybody stopped paying their mortgage? Well, okay... that might be a bit scary. Let me revisit that thought in a different way. What if over the next course of 5 years, 33% of all people had a foreclosure on their credit report. Would it have the same impact on your credit? That would mean 1 in 3 people would not be approved for a loan for a home. I am beginning to think that there may be a brief point in history when a foreclosure on your credit report may just be dismissed? Or if you were able to show proof of a reason why you defaulted, you may still meet the requirements? I have read and heard that a short sale hurts your credit almost as bad as a foreclosure. Maybe in 5 years a short sale will be forgiven, but a foreclosure will continue to be taboo. Hmm... what do you think?