Millions of Americans failed to qualify for Obama’s program to help troubled homeowners, despite the fact that many of them are in a substantial amount of trouble with their mortgage. Many no longer have enough income to pay their loans while others can only afford the payments but don’t qualify for refinancing because the value of their home is far below the balance of the loan.

Many Americans are now questioning the wisdom of making monthly payments on a loan that may take 10 to 15 years to get back to the value it had just a year or two ago. While many people have a fear of giving up on a contract, it isn’t as disastrous as it sounds these days. It is almost always preferable to negotiate a better deal on an existing mortgage, but lenders are not likely to sue if you walk away.

One option for many Americans is a short sale – that is, the process of selling a home for less than its worth with the lender’s permission. Other lenders are more forgiving and will let you hand over the deed for your house in exchange for an agreement not to start foreclosure proceedings. And as a final option, foreclosure is a last option or homeowners unable to make their payments.

Other implications of abandoning a mortgage include a higher tax burden (since the abandoned debt is taxed as income) and a lower credit score that could stay with you for a few years. However, the benefit of not massively overpaying on an asset could make it worthwhile in the long-run.