I am current on my house payment but thinking about letting it foreclose, should I?

I have a house payment that is tightening around my neck and just letting me squeeze by unable to save any money. When I bought the house last year I spent about 20k remodeling, now its worth about 40k less than I paid not including the cost of remodeling, its on the water in an a decent neighborhood in FL with a 10klbs boat lift and Gulf access, but I just dont see it going back up anytime soon. I dont qualify for a hardship package because I have a co-signer who makes too much money. I figure the amount I would save renting, or if I could possible buy another home before letting it go into default for a fraction of the cost with 1/2 the mortgage maybe the way to go, or rent. But Im getting nowhere and gonna be nowhere for a while, one more thing, if I decide to foreclose anyway to get the co-signer off so it doesnt affect their credit?