If you owe more on your mortgage than your home is worth, don’t panic. You have options.
If you can afford your mortgage, you can stay in your house and wait for the real estate market to recover.
You could refinance to shorten the loan term and pay down your mortgage faster, or extend the term to lower your monthly payments.
A loan modification could reduce your mortgage payments, but beware of high fees.
A short sale could help you avoid foreclosure, but you might have to pay the difference between your mortgage balance and the sale price.
Consider foreclosure a last resort.
Ask a financial advisor for advice.
