Of all the nightmare scenarios a homeowner can face, having an underwater mortgage is one of the biggest ones. When you’ve purchased an asset you expected to earn you equity and boost your net worth, watching the value drop is both concerning and disheartening.

You may have expected to use the equity you built to renovate the house so you could age in place — or perhaps you planned to sell the house in a few years and use the profits to fund your child’s college education. Realizing that these scenarios may no longer be viable options can seriously upend your financial strategies.

Fortunately, there are steps you can take to improve your circumstances even when your home loan is underwater.