More than 1 out of 3 homeowners say that if housing prices continue to slide they’ll walk away from their mortgages, according to a new Housing Predictor survey. The poll clearly demonstrates major changes in the way Americans feel about the U.S. banking system and their own financial well being.

Americans have historically felt responsible to fulfill financial commitments made to banks and mortgage lenders. But the foreclosure epidemic has grown to become the nation’s worst financial disaster since the Great Depression damaging the entire economy and sending millions to the unemployment lines.

Respondents to the survey are demonstrating they are fed-up with the way the economic downturn is affecting their lives. Some 36% of those surveyed said they would walk away from their homes if housing prices fall for a number of years.

As home prices and mortgage rates continue to fall, acquiring the home of your dreams may be possible. Homes that were unaffordable for many during the real estate bubble are now within reach for those fortunate to be in the position to snatch them up. Of the 705 counties tracked by eppraisal.com nationwide, more than 140 have experienced a drop of 30 percent or more in median sales price since their peak.

In San Diego County, California, which consists of cities such as San Diego, Carlsbad, and Encinitas, the median sales price has dropped by almost half, from $660,000 at its peak to $350,000. Those seeking the good life on the West Coast of Florida should turn to Collier County, home of sought-after Naples and Marco Island. Median prices have dropped almost 45 percent from $454,000 to $250,000.

If coastal living is not ideal, it’s not surprising that the Denver area is our next pick. Median prices are down to $162,000 (but don’t be fooled, ski lift tickets are still $90+).

Your time has arrived to get the house you have dreamed about in the location of your choice. With the state of the current market, buyers can negotiate better prices and terms on homes that have been on the market for an extended period due to a number of reasons, most leading back to the economy.  Sellers need to liquidate in order to make ends meet, prices are down, and interest rates low.  So here are a few tools to help with your search.

•  Use the eppraisal.com City Snapshot search to get more information about the area you are looking in, such as information about local schools, lifestyle, and market conditions.

•  If you’re looking to relocate and need a little guidance on what location would be a good fit, let Hoodeo help you find a neighborhood that best fits your lifestyle.

•  Now that you know where to look you can take a drive and use Trulia’s iPhone Application to find open houses near you on the fly.

Take your time and look for what you truly want. With so many houses on the market and limited buyers in this bad economy, you can have the pick of the litter. This is the perfect time to be in the market for a home.

The National Association of REALTORS® created its Housing Stimulus Plan to urge Congress to include provisions to the recent economic stimulus bill that will help stabilize the nation’s housing markets. The plan includes four points that focus on buyer incentives:

1. Remove the requirement in the current law that first-time homebuyers repay the $7,500 tax credit, and expand the tax credit to apply not only to first-time buyers but also to all buyers of a primary residence.

2. Revise the FHA, Fannie Mae, and Freddie Mac 2008 stimulus loan limit increases to make them permanent. The Economic Stabilization Act, enacted in February, made loan limit increases temporary, and subsequent legislation reduced the loan limits and made them permanent. This has broad implication for homebuyers in high-cost areas.

3. Urge the government to use a portion of the allotted $700 billion that was provided to purchase mortgage-backed securities from banks to provide price stabilization for housing. The Treasury department should be required to use the newly enacted Troubled Assets Relief Program to push banks to:

• Extend credit down to Main Street, making credit more available to consumers and small businesses

• Expedite the process for short sales

• Expedite the resolution of banks’ real estate owned (REOs) properties

4. Make permanent the prohibition against banks entering real estate brokerage and management, further protecting consumers and the economy.

In line with NAR’s plan, the Federal Reserve announced plans to purchase mortgage-backed securities from Fannie Mae, Freddie Mac, and Ginnie Mae for up to $500 billion. NAR President Charles McMillan said, “This is great news for home buyers and sellers and we applaud the Fed for taking this historic step.”

The plan is not without controversy, though.  Some feel it does little to assist those facing foreclosure, and it suggests using tax-payer money to bailout irresponsible lenders.  What do you think?

…and keep banks from going bankrupt.

Citigroup announced this week that it is freezing foreclosures among borrowers who are willing to work with them “in good faith.”  Furthermore, they are reaching out to homeowners who are at risk of becoming delinquent to offer assistance.

In order to to qualify, the home must be the borrower’s primary residence.  They must have sufficient income to cover a restructured mortgage — which may include adjusted interest rates, a reduced principal, or an increased loan term.

While these options will only be available to borrowers who have a loan with Citigroup initially, they plan to expand the program to include loans from other banks.

Is this a good solution?  Leave a comment telling us what you think.