It could take as long as 20 years for the value of your townhouse to rebound. I, personally, would walk on the loan and start over elsewhere. Call your lender first, and ask for a new loan balance (forgiving $121,000.00) of $157,000.00 and a fixed rate of 6%. If your lender refuses, tell your lender you are turning the townhouse back over to them. Good luck.
