Almost everyone is backwards on their mortgage right now.  Here’s how to get out of this mess.

First, re-budget your expenses.  Sure, your budget might be comfortable right now, but it won’t be if you 2 months behind on a mortgage and have late fees on credit cards because you lost your job or got a new job and are paying rent and mortgage.  Make sure you see negative equity as a debt.  It is no longer an asset at this point it is a liability.

Next, free up additional cash.  A simple way to free up some cash is to refinance your car.  If your car is paid off take a loan out on it.  In almost all cases a refinance car loan will give you a lower rate than a mortgage loan.  Let the loan officer know that the entire amount will be going to your mortgage company.  Most companies will even write the check for the loan amount in the mortgage companies name with your name and account number on the check.  This will keep you from spending a penny of it and will prevent you from increasing your debt.

Now, you have an extra monthly payment (a portion of your mortgage at most likely a lower rate), that you have to pay every month.  You also have a chunk of your mortgage gone freeing you up to either sell, refi, or just stay put with a little more peace of mind.