In a recent survey of U.S. homeowners, real estate site Trulia and foreclosure site RealtyTrac found that only one percent of homeowners with a mortgage would consider walking away their first choice if their home were underwater. A total of 69 percent would plan first to modify their loan; 59 percent would never walk away no matter how underwater the property.

The online survey, conducted by Harris Interactive May 10-12, also found a significant decrease in interest in the purchase of foreclosed properties, although renters are considering foreclosure purchase more than they did last year.  Compared to the 55 percent of U.S. adults that were at least somewhat likely to consider buying a foreclosure this time last year, only 45 percent are thinking about it now. In contrast, however, fewer consumers think that a foreclosure carries stigma. In May 2009 85 percent noted downsides to foreclosure purchase, while this year’s figure is only 78 percent. Concerns include hidden costs, risky process, and loss of home value.

“For every borrower who avoided foreclosure through HAMP last year, another 10 families lost their homes,” said Trulia CEO and co-founder Pete Flint, in the announcement. “It now seems clear that government programs will not reach the overwhelming majority of homeowners in trouble. Combined with decreased consumer interest around purchasing a foreclosure it may take even longer than anticipated to see true health return to the real estate market.”

The survey also pointed out consumer expectations of foreclosure discounts, with 95 percent expecting to pay less for a foreclosed home that for a similar property not in foreclosure. 18 percent of adults in the U.S. expect a discount of 25 percent for foreclosures, while 36 percent expect to save at least 50 percent.

Of current U.S. renters, 57 percent are likely or somewhat likely to purchase a distressed property, and the younger they are the more interested they are. In the 18-34 age group, 65 percent are giving foreclosures some thought, as are 63 percent of those 35-44, and 54 percent of 45-54 year old renters. Of those 55 year plus renters, only 31 percent would consider buying a foreclosed property.