Most of the homebuyers who have purchased their dream home during the housing boom of 2004 - 2006 are upside down on their mortgage. So, what does “upside down on mortgage” mean? It is a situation where you owe more money on your home than you could get by selling it. It’s very discouraging to know that you owe more on your home is worth.

But hold on. If you find yourself in such a situation, you have some options which might let you keep your home. Check them out here:

1. Programs available and whom to talk: When you are upside down on your mortgage, it is very important to know what programs are available for you. You should also know whom you should talk to in order to take advantage of those programs. For example Hope for Homeowners is great program to help people who are on the verge of mortgage default and foreclosure. You can contact your lender and check out how they can help you in your situation.

2. Rent your property: Though renting of the property leads to a lot of wear and tear, you can demand rent that equals your monthly mortgage payments. However, this would depend upon your location. In the meanwhile, you can devote some amount of money towards the principle balance which will help you in building equity. However, I agree that this option may not be open for everyone.

3. Consult Your Lender: A lender does not want to take away your home. With lots of foreclosed property in the market, he may have to bear a huge loss if he forecloses the property. If you are unable to pay the mortgage debts, speak to you lender about loan modification. Through this process, the lender will give you an alternative payment plan in order to pay off the loan.

If you do not want to keep the property further, you can speak to the lender about short sale and deed in lieu of foreclosure. Though these steps would tarnish your credit, it would not be as stressful as foreclosure or filing bankruptcy.

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