Many individuals face your same situation, especially after the home value decline the country has been experiencing over the past few years. The best place to start is by contacting your lender to discuss a mortgage reduction. Since you have not been late on any payments, your lender may be willing to work with you to find a monthly payment that you can afford. Some lenders are more willing to negotiate than others, but being persistent is key in establishing communication with your lender. In addition, you may want to calculate your monthly income and expenses so that you will have a clear number to communicate with your lender regarding what you can afford to pay each month. For more information about strategies to help you reduce your mortgage payments, visit the Federal Trade Commission’s website, http://www.ftc.gov/bcp/edu/pubs/consumer/homes/rea04.shtm. In addition, you may want to contact an attorney to discuss your situation and see what other options you have regarding a mortgage reduction.