Negative equity has plagued many homeowners since the recession began.  As house prices declined so did property values.  The property values then fell below the mortgage debt levels leaving homeowners in debt for more than their home was actually worth on the market.  Without adequate equity it leaves a homeowner unable to remortgage.

House prices are not expected to increase anytime soon.  The forecast on house prices is that a decline by another 3 per cent should be expected.  This means that homeowners in negative equity are not going to be getting any relief from an increase in property values.

There are ways to come up for air and get out of negative equity.  Homeowners should consider any savings they may have that could be used to pay down the debt level.  While some funds should be kept for emergency needs, if the interest rate paid on the mortgage debt is more than the money in savings is making then it could be a smart financial move to pay off the debt.  In getting out of negative equity a homeowner could then remortgage into a lower interest rate and save money.

The homeowner could also seek to increase the value of the home.  Renovations and upgrades to certain parts of the home can increase the value beyond its current level.  Only by lowering debt or increasing value can the negative equity be escaped.  Remortgage offerings are currently cheap and if a new deal can offer a savings with lower interest rates then it should be a goal.

Many homeowners will have to escape negative equity at a slow and steady pace by paying a bit more on their monthly repayments every month.  This steady pace will not gain quick access to a remortgage but it is a patient and smart path to coming out from under water with a troubled mortgage.