If you drive down a street and see houses with boarded up windows, the first thing some people think is, uh-oh, how did I get in this neighborhood? But these days you don't have to worry that you've taken a wrong turn at Albuquerque. This sad occurence is happening and In the recent foreclosure crisis it seems no one is exempt.

Unless you've been living in a rose colored bubble you know that mortgage rates are off the hook, acquiring credit requires an sign from above; and despite what the D.C. fiction writers say, you know the economy is dismal at best, and the dreaded "R" word is looming, if not already here.

Across the U.S., some homeowners are not only bailing on mortgage payments that are three to twelve months in arrears, but leaving their homes behind completely. But it's not just blue collars who are throwing the towel, even some of the rich and famous like Michael Jackson, Victoria Hearst, Evander Holyfield, and poor old Ed McMahon are skating on their mortgage responsibilities.

But is the "just walk away" option really a viable or necessary alternative to biting the bullet and coughing up the dough?

Granted, most likely Michael Jackson will never be homeless, unlike many John and Jane Doe's who will be if they neglect their financial responsibility to pay their mortgage. But there are alternatives to moving back with mom and dad, or worse yet, freaking out and eyeing that quaint little spot under the bridge.

For instance, you could talk to your lender to make more workable financial arrangements. Most lenders do not want a loan go into foreclosure. They know that foreclosures are a no win situation. Lenders want to work with you in these troubled times, and most will offer alternative payment plans.

If Homeowners act quickly and early they can get forbearance from their lender. A forebearance agreement allows a borrower to reduce or suspend payment for a limited time. Ask any college graduate who's sought a financial hardship forebearance and deferment plans.

Well, a mortgage it's not exactly the same as a Student Government loan, but the option is available to those who act quickly and early on with late payments. Some borrowers may even be able to pay off the amount in one lump sum. Those who are more fiscally challenged with "short-term" financial woes, will find most lenders will work out special payment plans.

Alternative payment plans can include agreements to add a portion of the missed payment on to the mortgage until the account is current. Some lenders are even willing to give a homeowner in financial dire straights a few months leeway to get back on their feet, if they will make partial payments and late fees, and defer part of the past due amounts to the end of the loan.

Ultimately lenders don''t want to be left in the dark. Borrowers need to tell them if they are experiencing problems. It is cheaper to work with borrowers than it is to foreclose. Unfortunately, when some homeowners fall behind on their payments they fail to contact their lenders. Even the most responsible borrowers may begin to panic and let a snowball effect take over. When this happens, instead of reaching out for help, they begin doing stupid things, like not answering their phone, and ignoring mailed notices. Eventually the house goes into foreclosure.

Sadly, this is when some homeowners throw in the towel and cry sour grapes. To them walking away seems more reasonable than trying to pay a loan, especially for a house they no longer think is worth all that trouble.

The panicmongers in the media would have people believe that homeowners are walking away in epic numbers. While it is happening the truth is quite different. The truth is that abandoning a home is usually not always in the best interest of homeowners. The long-term rewards of making payment arrangements out weigh the risk of a bad credit rating. And doubt not - walking away from a mortgage will annilate your credit.

Sure a foreclosure is gone after seven to ten years. But even if its past the time limit, it still is visible to creditors, and good luck trying to find a reputable lender after you've bailed on your home. Not many are willing to chance someone who walked out on their most important debt.

Many people want to place blame somewhere. And many people are to blame but two wrongs don't make a right. Those who think they can abandoned their homes and be scot-free of any repercussions are deluding themselves. On the other hand, some economist point the finger at the deceptive borrowing practices of financial institutions. But while lenders may they get their wrists slapped, borrowers still have to repay what they borrowed.

Borrowers are not solely to blame for living out of their means as some would like us believe. Deceptive borrowing needs to be stopped completely. Legislation better than Bush's 30 days extenstion band-aid needs to be inacted. And Market speculation needs to be curbed, and possibly abolished until the U.S. Economy begins to recover.

But until that happens, more immediate solutions are to assist homeowners to prevent mortgage foreclosure. Homeowners can contact the FHA or independent loan counselors to negotiate with lenders. People can inquire about changing loan terms. Some borrowers may be eligible for one-time interest-free loans.

In these darkening days many homeowners are fighting to hold unto their homes. Both unemployment and inflation are rising like gas prices. All of the above affects the economy, which is moving along like a herd of turtles. But there are solutions if homeowners keep in contact with their lenders.
Still think your in too deep? Don't despair, there are other options for homeowners too. Private investors and government grants are waiting to be divvied out if you apply for them. Michael Jackson didn't just get lucky when Colony Capital, LLC bailed out Neverland. He had to look for and ask for help.

The bottom line, this isn't a scene from the Grapes of Wrath, at least not yet. And no one wants to see neighborhoods with boarded-up houses become tent cities, where once happy children cavorted on picture perfect lawns.