Bank offered loan mod... not sure I want to accept.

[Mike]

Believe me when I tell you that the information in this forum really works. Using the advice and tactics from these threads has allowed me to negotiate a loan modification. Today, ALS offered me a modification. They have agreed to fix my rate at 5.0% for the remainder of the loan and are only asking for a $575 fee. I am current on my payments and to be honest I was completely surpised that they would offer such good terms. Here's the problem... my wife and I hate the house and the neighborhood has gone down the drain. Many of the homes are owned by investors and they are renting them out to anyone with a heartbeat. Moreover, we are about $70,000 upside down on the LTV. I can't believe I am saying this, but I kinda still want to walk away. Any opinions?