Upside down in a Michigan home

What do you do if you are upside in a home?. What do I mean by being upside down?
With Michigan's economy and housing market we are seeing more and more people in this predicament. What has happen is that your house value has fallen below what you owe on the mortgage.
Upside down means that you owe more on the house than the house is worth. It does not mean anything if you are staying in the home and you can afford the mortgage payment. You just have to ride out our poor housing market and continue to pay down the mortgage.
The problem is if your payment is going to rise beyond what you can afford or you have to relocate. Or if you can't keep up and you are going into foreclosure. Then you have a problem. First you need to contact the bank and try to work something out with them. Either a lower payment or giving the home back to the bank(They call it deed in lieu of foreclosure) you are giving the house back to the bank and moving out right away. If you truly have financial problems the bank will try to work with you. However there are some banks out there that are hard noses.
If you can't work out something with the bank then you need to consult with a bankruptcy lawyer next.
The last choice if nothing else works out if that you may have walk away from the house. If you can't sell it, you can't afford the payment, you have to move to get a job, you can't work out a deal with the bank, you can't file bankruptcy, then you may have to walk away from the house. If you want to talk about your options go to my website and contact me. I'll try to help you on what to say to the bank. Or to see if you have any options. www.russravary.com
If you are upside down and are staying the house start paying a little extra each month to lower the mortgage balance. Do you know if you make one extra payment a year on a 30 year mortgage that you will cut it down to about 22 years. Even a little bit each month helps. Good luck and have a great week.