Many homeowners looking for help with their mortgage malaise are being told that the lender can't do a loan wor-out for them because they're not behind in their payments.

So they face the damned if you do and damned if you don't dilemma. If they fall behind in their payments, their credit score will certainly take a big hit. If they don't make the monthly payments and the lender can't make a suitable work-out, with a bad credit score they'll have a very hard time even finding an apartment to move to if they're foreclosed on. As the number of renters increase, landlords can choose those with the best scores.

With an estimated two million adjustable rate mortgages set to adjust in 2008. It can only get worse.

I know  family that was paying close to $2,800 per month in housing expense. The husband had a big reduction in income and they were just barely making the payments. But because they were not behind in their payments, the lender would not adjust the mortgage terms. Since they owed more than market value, they decided to move to a larger rental home for $1,500 per month before they missed a payment and had their credit destroyed. They did not want to take a chance in not qualifying for a rental.

Let's hope lenders come to their senses before any more lives are destroyed.