During difficult times and financial distress, we can’t help but worry. It is good to know what should be done when these things happen. One out of five homeowners currently owes more on his mortgage than the house is worth. Some homeowners may perhaps ask “What are my options if I’m underwater on my mortgage?” If you are among those who can afford the payments and are not planning to move for a few more years, there’s no need to worry. Your equity is being rebuilt with every payment you make, and home prices eventually willrebound, which will bring you above water again. Another possible option may be refinancing. The new mortgage relief program of the government allows people who owe as much as 105% of their home’s value to get a new loan as long as they can prove they will be able to afford the payments. Homeowners who are struggling financially may be able to get their loans restructured Your last resort is a short sale, in which your lender lets you sell the house for less than you owe. But that might drop your credit score as much as 200 points, making it tough to get another loan at terms you can afford. It is advisable to contact your lender if you’re struggling to make your payments. You’re more likely to get help if you reach out before warning notices start coming.