What should i do if i am faceinhg nagetive equity and can not afford to pay my mortgage, ?

Why is it you can no longer afford the mortgage? Did you get a cut in wages? Did you buy more house than you could afford? If you can't afford the mortgage, you can't afford this house. Best to sell it for whatever you can, pay down the debt as much as you can with the proceeds and work on paying down whatever is left. Good luck.

Fix up your house so that it appreciates and is more valuable. Modernize the whole place to be a model home and work on the main three areas of Kitchen, bathroom and curb appeal. Put up a For Sale By Owner sign and get out of there!

(who knows, you might even MAKE money if you raise the value enough! wouldn't that be nice?)

short sale your property or ask the lender for a loan modification.

Can you borrow money from some where else & in the meantime come up with some money making ideas....If your house is big enough can you get a house mate to pay some of the mortgage? Can you do any kind of extra work to make more. If you can get something changed you can figure something out. We live in an abundant universe so there is enough money you just have to open up to ways to cut down on your payments & get the money flow to come in bigger. If this isn't possible you might have to sell your house but just open up & see what ideas come to you at first.

If you are not selling your house, there is nothing to worry of negative equity. If you cannot afford to pay your mortgage, go immediately to the bank or lender to make some kind of an arrangement so that you need not have to face foreclosure.

stop paying out on non essential items and actively look to see where you can make savings

speak with someone at the institution that holds the mortgage and explain the situation. do you have an arm or fixed rate? there are many companies out there now willing to work with you to get out of arm mortgages. worst case scenario, foreclosure will damage your credit but not as bad as it would have 5 or 10 years ago. with all the lending scams and greediness of the mortgage companies during the later yrs of the real estate boom and the record number of foreclosures you'll be ok. understand, this is worst case! do what you have to to make the payment for as long as you can. if at all possible and you're at all handy, make small cosmetic improvements to try and make up for the equity loss and put it on the market. remember, you're not the only one in this situation, not by a long shot. it doesn't speak anything of your character or make you a bad person. good luck

Get in touch with a financial adviser or an expert at your bank.

If you can't afford your mortgage then that probably means you are also struggling with bills and credit cards ...... make a list of all your debts and contact the providers = freeze all your accounts (you can't use them - but still have to pay them) then speak to someone - your bank or other financial about a consolidation loan that will pay off your credit cards and other debts (outside normal household bills)..... you MUST service this and you MUST NOT have any more credit cards.....
In the mean time - depending on how long you've taken your mortgage out for - you might be able to extend your mortgage (to 65yrs old/70 yrs old) - this might add another 5-10 years on your mortgage - but it does mean your payments are reduced ... in the short term this will help you out .... most mortgage lenders are now under a legal obligation to assist you rather than repossess .... if you have trouble with getting them to agree to do this then speak with CAB (Ciitizen's Advice Bureau) they have advisers who can act on your behalf and speak as a mediator with your mortgage company ..... negative equity is only negative if you want to sell your house or realise the value in it in some way (like taking a loan out using your house as collateral) and the value of your property (at this moment) is less than the mortgage you have on it..... really this shouldn't concern you unless you are looking to take a loan out against the property .... have you considered remortgaging? PLEASE whatever you do don't go to a high street money lender.... their interest rates are HUGE you could end up in more trouble when they can work things so your interest is something like 500%!..... please ... re-jig your finances.... write down everything that's coming in - counter this with everything that's going out .... see what you have left .... see if you can re-figure some of your outgoings and perhaps (if you can) offer to use the difference you've managed to scrape up towards upping the payments you can afford on your mortgage ... by doing this the bank/building society/mortgage lender is more inclined to be sympathetic to you and do their best to help you......

Go to the citizens advice bureau where they will help you speak to anyone you owe money to and arrange smaller payements. They are very helpful and non judgemental. Do it sooner rather than later.

Good luck for the future x

The first thing that i would do is try to rent out one of your rooms.Try to buy a cheap reo from a bank,while you sell the house you are living in now.Call the lender and ask for different terms in your monthly payment believe me the bank would rather work something out then to have to take care of your property because they are not in that business.good luck, God bless

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