There is a lot of good advice here. We have had several clients go to the county as suggested and request a tax abatement. Some have been successful, others not. Some have been able to get the value for tax purposes reduced some, but maybe not to where the current market value is, but it's at least a help for the current market. The value of your home will improve over time, those losing value now are those having to sell...most are opting for a short sale versus trying to sell at a higher price and not sell or face foreclosure. Many individuals who purchased in the past 5-6 years are in the same situation you are where their tax value is higher than market value. Again, a tax abatement is the best chance to lower your tax liability in the short term.