At this point, the average American is sure to have lost thousands of dollars of market value on their home.  As many as 25 percent of American home owners currently owe more than the actual value of their home, leaving them upside-down, financially speaking.  Dealing with the loss of finance and equity in this hazardous economic climate can be very much like dealing with the loss of a loved one; the grief affects us in similar ways. 

Using stages of grief as way to sift through the terrific losses that so many Americans are currently struggling with, there is a formula to follow and show how one deals with the tragedy of losing a home. 

Firstly, feelings of denial are inevitable.  Feeling that there can't possibly be a way the the government can continue to let the economic state continue to get worse, reminding oneself that markets fluctuate, and that real estate will "bounce back", are all subtle forms of denial.  While it's good to be optimistic, it is unlikely that the real estate market will bounce back so quickly.  Relatedly, Americans who are facing foreclosure, equity loss and strife move quickly out of the denial phase, into full blown anger.  Blaming other homeowners who walk away from their homes in a bleak market, or those that accepted loans with loose eligibility, leads to anger and hostility. 

Trying to bargain, or make temporary improvements, is the next step for some.  Loan modifications, appealing to real estate agents or banks, only postpones foreclosure.  Once attempts at bargaining have failed, depression can set in.  Feelings of hopelessness, and being overwhelmed financially can make homeowners fear for the worst.  Missing mortgage payments, increased payments, or avoiding contact with financial lenders due to financial strain can leave homeowners feeling guilty and trapped.  Wondering how to recover credit scores, refinance a home, or relocate can be cause for stress and anxiety.

Inevitably, acceptance of the reality of the situation occurs.  Taking accountability for mistakes made, and decisions that cannot be taken back, can sometimes lead homeowners to detach emotionally from a home purchase.  Instead of viewing a home as an asset, some are likely to begin viewing it as a liability, and seek assistance in walking away from a home. 

In order for Americans to make sense of what might be happening at any stage of their homeownership-good, bad, or ugly- it is always best to be true to oneself, seek guidance when necessary, and make the best decision for your future.  A home lost does not mean the world is ending; nor does it mean you can't recover and bounce back in the future.