An underwater mortgage means that your home is worth less than what you owe on it. This is also sometimes referred to as being upside down on a loan. Unfortunately, the housing market today is still doing pretty poorly across America and more and more people are finding their mortgages far surpassing the actual value of their homes. There are a number of reasons for this situation, the two main ones are that homes aren't worth as much anymore because of reason number one, homes were grossly inflated a decade or so ago.
No matter why you're upside down on your mortgage you face some serious decisions ahead of you. The first consideration you should ponder is if you're able to afford your current mortgage. If you can still afford your mortgage then you probably don't have to worry about being forced out with a foreclosure. Then next obvious decision is if you want to stay in your house. If your house is truly a home and you plan on staying for a long period, then you don't really need to consider a move.
But if you're worried about falling behind in your mortgage or if you are losing a lot and considered it an investment, you may want to look into some alternatives and different ways of escaping the mortgage before you fall into foreclosure. There are a number of paths you can take, whether you want to keep the home or get rid of it if you're afraid the mortgage will get too overwhelming. Make sure you speak to a professional right away so you can have the outcome you want before it's too late.