Hi Victoria,

Hang in there. As part of Obama's housing bailout plan, you may be eligible to refinance your home even though you owe more than it is worth. I have posted a link to the Wall St. Journal's FAQ on this topic.

You may also be eligible for a note modification even though you are not behind on payments. Again, reference the above link for details.

Finally, you should look into why your taxes went up - almost all areas of California declined over the past year. You may want to contact your county tax assessor to see if you are eligible for a reduction in property taxes - assuming your property declined in value since the time you purchased it.

Good luck!

-Jim