A set of nonlinear Langevin equations for fluctuations of the local conserved densities in a fluid under shear is proposed. These equations are a model for the extension of hydrodynamics to very short wavelengths at liquid densities. The hydrodynamic modes associated with the linearized equations are studied as a function of wave vector and shear rate. The degeneracy of the viscous shear modes is lifted by the shear, and one of these modes combines with the heat mode to form a propagating pair. As an example of nonequilibrium fluctuations, the dynamic structure factor is calculated for several values of frequency and wave vector. At large shear rates one pair of propagating modes becomes unstable at a wavelength of the order of the particle size. This instability is suggested as a possible explanation for a shear-induced disorder-order transition seen in computer simulations. Nonlinear mode-coupling effects are studied elsewhere.