With the recent housing decline, coupled with the general economic decline, many Americans have become upside on their mortgage. That is, owing more than your home is currently worth. Those in this situation are in a tight spot, but do have some options.
 
Not the greatest options:
 
Selling the house: This is not the most attractive option because homeowners are likely to have a loan balance left over after the house is sold equal to the spread between what the house is worth and what is owed.
 
Renting the house: Along with housing prices, rental prices have also experienced a decline. In this economy you are doing very well to rent out a home that you are upside down on equal to your mortgage payment. Renting the home may not be the best option either.
 
The positive options:
 
Trying to refinance your home: talk to your lender about any options you may have to reduce your payment or restructure your loan.
 
Talk with a HUD Certified Counselor: There are government programs that can help those who are in homes they can no longer afford and you may qualify for them. (http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm)
 
Visit Hope Now: This is a site that provides guidance to avoid foreclosure.
 
Many homeowners will qualify for some sort of aide through government programs that are aimed at making housing affordable and the best way to find out what help is available for you is to contact a certified counselor.