We are talking to so many people who actually do not understand their own predicament.  Even when they say what they owe on mortgage, they treat it as a figure, an amount with which they have no connectiion.  'Oh, by the way, I think we have a secured loan as well'  is another throwaway line that can put them in negative equity.

I would contact your lender to get up to date redemption figures which they will send in the post.

If you have been are about to be in court, ask for your figures without litigation costs.  These costs come from a third party and typically delay you getting your figures.  Litigation costs can add between £500 and £1500 to the total you owe.

Who else has a charge on the property?  it will cost you £3 to find out from Land Registry who has charges registered against your property.  You need to know this as these will need to be settled if you are intending to sell your home. 

When you have all this information, you will know what will have to be paid off in total if the house were to be sold.  In law the first lender MUST be redeemed in full on the sale of the house.

Now you need to look at the current value of your home.  Go on Right Move and look at SOLD prices in 2006 and you will not be far wrong in the current market.  Most gains over the last 2 years have been wiped out.  This alone puts a lot of people in negative equity, meaning they now owe more than the house is currently worth.

If can afford your monthly payments, hang on in there.

If you cannot afford your monthly payments, call your lender and see if they can reduce your payments by extending the years, or by changing from repayment to interest-only. 

Doing nothing is NOT an option. 

Sadly we are often the only people that homeowners can get a sensible answer out of.  People give up on the CAB because they are so difficult to get hold of.  The government are addressing this, but not quickly enough.

Please make sure you know your figures.  Yes, it may shock you, but knowledge is power.