An upside down mortgage can cause great financial and emotional stress to any homeowner. It happens when you owe more on your home than it is worth and in the long term, it looks like you’ll have a very hard time coming out on top. Don’t lose hope. There are specific things you can do to get out of your upside down mortgage.

1. Modify your mortgage – Thanks to federal programs like HAMP and HARP, you can work with your lender to modify the terms of your mortgage. You may be able to lower your principal or interest rate.

2. Short sale – If your lender gives you permission, you can sell your home for less than what you owe. This helps you avoid a foreclosure and satisfies your lender to the point that you will not be required to make up the difference.

3. Keep paying – Even if you are upside down on your mortgage now, you will get to the point that you own your house outright. You can keep making your monthly mortgage payments, and maybe even sneak in an extra payment once in a while when you have the cash. You’ll pay your home off quicker and then your mortgage will be a non-issue.

4. Rent the house out – If you can command a monthly rent that is high enough to cover your mortgage as well as maintenance and repair expenses, you can find a less expensive place to live for yourself and save some money.

5. Strategic default – Instead of waiting for the bank to foreclose, you can walk away. Expect credit damage, but at least you won’t have that loan hanging over your head.

Stephen K. Hachey, a Florida real estate attorney, can help you explore your options and make the best choice. Contact our offices at 813-549-0096.

This article is for general informational purposes only and does not establish an attorney-client relationship. Please contact a licensed attorney in your state of residence. For more information on our services, please visit our website at

This post was written by Stephen Hachey. Follow Stephen on Google, Facebook, Twitter & Linkedin.