Lack of equity in your home does not signify underwater. All it means is that that particular asset is in a stagnant position. Underwater is the inability to meet your monetary commitments.
My last property was bought back in July 2007. It is upside down, but I figured this in. I bought it as a 10-15 year hold to hopefully cash in to pay for my 5 year olds college needs. If that does not work out, I will have to keep it as a rental.

I thought the piece on the nightly news portrayed it (the 10% of people upside down) in a really bad light. The real issue is, what % of these folks are in financial straights. Seems to me that the media is just feeding on this. Every night this last week Charles Gibson led with a story on the housing market. It is all about the ratings.