Niagara Falls, NY
A: First, negative credit information stays on your credit report for seven years, not five. So, you should not take lightly the notion of purposely defaulting on your mortgage. And, future lenders will not look kindly on the fact that you just walked away from your financial obligation. Besides, you need to understand that just walking away does not mean you can walk away from this debt.
The lender may take you to court and get a judgment against you that would result in your having to pay the difference between what you owe, including any foreclosure cost, and the fair market value of the home. If you are serious about this, talk to an attorney so you know exactly what could happen to you based on your state law.
What I'm most concerned with is do you need to walk away? In your question, you don't give any indication that you can't afford your monthly mortgage payment. Owing more on your mortgage than your home is worth really only matters if you need to sell or refinance. Now, if you truly can't handle the mortgage, before just walking away, try to do a short sale, which means your lender will allow you to sell the house for less than what is owed.
However, if you like the home and you can afford the payments and you don't plan on moving any time soon, what's the problem?
You may have made a bad purchase, but honestly, it does not appear you need to walk away from your mortgage.