I have a $750,000 mortgage on a house currently valued for less than that (probably $650k). I'm also on the verge of a divorce and my husband can't afford the mortgage without me. I can probably handle it on my own as long as I get a renter into the house. The first trust rate is 6.75 and the second is 8.25 and it's a fixed interest only loan for 10 years. I want to take advantage of the lower rates because it could really make a difference in my ability to get my husband out of the house and afford to stay there until I can sell it when the market turns around. How can I get the banks to negotiate with me? I hear if you don't pay your mortgage for a couple of months, they'll negotiate with you on the rate. Is that true? Any downsides to doing that? All suggestions are welcome!

HUGE downsides to that... like the long term destruction of your credit rating and possible foreclosure.

About the only way you can change your rate is to refinance. With you owing significantly more than the value of the house, unless you have crazy good credit and a large sum of money handy, its probably not going to happen.

If you cannot afford to continue to make the payments, I would recommend speaking to the bank about short selling. This will allow you to get clear of the payments without the pain of foreclosure. Your credit rating will still likely take a hit, but I don't think its *AS* bad as a foreclosure.