Upside down mortgage is a highly unfavorable financial situation in which your home undergoes a market devaluation resulting in negative equity which is unable to cover the mortgage drawn on it. This is a highly non liked and avoided situation amongst the mediocre how owner crowds but with prevailing recession, this is what is happening to at least twenty percent of the home owners in the US. You do not have loads of choices and any option that you might take might just be able to save you from more sever effects of bailing and fore-closing.