Why would you refinance if you're underwater? Wouldn't you walk away from the property in most cases? Of course that doesn't eliminate the economic impact. It

Why would you refinance if you're underwater? Wouldn't you walk away from the property in most cases? Of course that doesn't eliminate the economic impact. It just shifts it elsewhere. An decent case can probably be made for the government to take on such loans and offer some scheme to forgive the difference if certain criteria are met.