My friend Donna called me in a panic and shared how she was on the brink of a financial disaster. Her lucrative job in the mortgage industry was gone and so was her ability to pay her first and second mortgages. "After my one friend told me to let my house go into foreclosure and the other said take an anti-depressant – I knew those sisters had it twisted," Donna said. She turned to me. "Should I sell my house or slug it out trying to find another job?" I told her point-blank: "The worst thing you can do is to take a pill and do nothing."

If mortgage mania is messing up your finances, it's time to swing into action.

Hope is not a strategy. After reviewing Donna's situation I learned that this single sister owned a four-bedroom Cape Cod , and her daughter had just moved to New York . She had talked to her Realtor who said she could sell and still make a $50,000 profit. So what if it was worth several thousand dollars more a year ago. The bright side was she could pay off the debt and still have a stash of cash. No cause for panic or a need to go on meds. Visit www.zilliow.com to get an estimate of your home's current market value.

You are not your house. The four-bedroom Cape Cod had served its purpose and had become a burden instead of a blessing. Servicing the debt from two mortgages or impending foreclosure could jeopardize her credit history and make it difficult to find another job. Employers check credit records to determine if you manage your finances responsibly. Visit www.freecreditreport.com to obtain a free report from one of the three credit bureaus.

Go on credit-card lockdown. Rip up the credit cards and cut expenses. Discontinue the data features on the cell phone. You can wait till you get home to check your email. Call your insurer and find out if you can increase your deductibles to lower your payments. Cancel the premium package on your cable subscription. It's time to get creative and manage your money before your creditors start managing you with threatening phone calls.

After our visit, Donna realized that she had allowed a temporary situation to paralyze her.

Luther and Dionne had it right, "A house is not a home."

Your home is wherever you decide and can afford to live.

Related links: www.bvonmoney.com/2007/11/01/what-to-do-if-you-miss-a-mortgage-payment/