If you sell later, you might loose more money.

First, you shouldn't have bought a house in 2006. Second, if you have to sell your house, sell it ASAP.

If you read news headlines, you probably heard credit crunch, banks closing doors, mortgage lender in trouble, and fear of recession. From all these info, you probably know that the housing market is going south. Stop the bleeding right now by selling your house might save you money since you will loose less in the future (next year this time, your house might loose another $30k). The writing is on the wall: the house price won't rebound for years to come.

Pay more attention to personal finance. You house provides a roof over your head, not an ATM. If renting is cheaper than owning, don't buy. The next time you want to buy a house, think twice and calculate the price range that is affordable to you (total cost including mortgage, HOA fee, property tax, home owner insurance, etc., is less than 28% of your gross income).

One muggle