Home abandonment. When I heard the phrase I had no idea exactly what it meant. Not that there are a lot of things it could mean, my brain just didn't wrap itself around the concept at first jump. After some research it has, and me and my brain agree; it is one of the dumbest ideas we have heard in awhile.

Homeowners, upside down in their mortgages, are just saying "oh forget it" and walking away from their homes. Being upside down means owing more than the home is worth. It also apparently means that you can disregard any sense of responsibility you have to the people you took a loan out from.

I was even more surprised to learn that there are companies who specialize in helping people do this. Offering advice about how to live in the house until the bank evicts you so you can save money on the next house.

I may not be the smartest guy in the world but even I can see that if you walk away from this house, you aren't going to be getting another one for awhile. Giving your bank the finger and walking out on your loan is the kind of thing that is going to show up on your credit report. Really. It is. Trust me.

Having bad credit can affect every aspect of your life. Finding a job, buying ANYTHING that costs more than what you have in cash, having a credit card, even some cable companies do credit checks. Poor credit raises your cost of living because it raises your interest rates IF you manage to get a loan.

Ok. So the fact is that a lot of people got loans they never should have, their lenders extended them credit when they shouldn't have.

HOWEVER, as a consumer it is YOUR responsibility to read and know the facts and understand what you are signing. The bank isn't some 18th century devil who tricked you out of your soul, you signed it and you should have known what it meant.

What to do, what to do...

For starters, if you haven't called your bank, DO SO NOW. Right now. Banks make more money from a paid off mortgage than a foreclosed home, so many of them are willing to work with you.

There is FORBEARANCE, where the bank agrees to let you stop making payments for a short period of time. You'll usually need to show them that you'll have money in the near future. REINSTATEMENT, which is making a large lump sum payment of what you owe plus any fees incurred. REPAYMENT PLANS are you making larger payments until you are caught up.

And what if you don't have the money for these things? LOAN MODIFICATIONS work for a lot of people. All that this means is changing the terms of your loan, giving you lower payments or lower interest or both.

Whatever you choose to do, abandoning your home with out making an effort to resolve the issue is just dumb. This is your financial furture, don't walk away from it.

For more information visit Legal Loan Bailout