BOA- Need advice from experts

[gbcac]

My current loan balance 1st- 523k 2nd -65k both with BOA
Right now I have Interest only Loan which will be resetting next year and monthly payment is $2130.00
Current value of the home is 300k ...
I have received any offer for trial period of 3 months to pay $1630 and alter will be Amortized to 40 yrs with 2.2% for 5 yrs and then fixed to 4.875% for the life of the Loan ..

Doing my calculations ,see that after end of 5 yrs still the principal will be 480k(on first) and not sure if its worth a try as don't think the prices will rebound back 50% and if I have to sell the property and move after 5 yrs will be still upside down and in similar situation as now.

If I can settle the 2nd Loan by paying down 3% and close and get the 2.2% fixed for at least 10/15 yrs think worth trying it.
I don't have much savings and paying major chunk towards the Mortgage
Please advice if have any other options worth trying ...or exit with Short Sale/Foreclosure now(Housing crisis) rather than waiting 5 yrs knowing will be in same situation later ...

[azhardspot]

home prices now are ~2003-2004 levels
no one has a crystla ball - but everyone learns from the past

assuming a 3-4% increase in the home prices every year - similar to what they were before the 2005 bubble, most of the underwater homes will take about 10 years to break even.