Don't Let Foreclosure Destroy Your Mind

Frank provides another example of a couple who lost their property but are turning the lemons into lemonade. Kurt -- who works for a homebuilder -- and his wife Jackie owned one home in the Denver area, along with a vacant piece of property. They planned to build a $1.5 million house on the lot that would only cost about $200,000 to build because of Kurt's homebuilder connections.

However, the tight credit markets made it impossible for the couple to obtain a construction loan. They were forced to sell their $450,000 primary residence at a loss when the interest rate reset at a higher rate and Kurt stopped receiving his annual bonus amid the housing-market downturn.

Although it caused much stress in the family, they are now renting, thankful that Kurt still has his job, and are holding onto the lot to build their dream home when market conditions improve.

"Sometimes having a dream like that can offset the depression and frustration you feel with something else," says Frank. "And if you can take comfort, you're in good company: You've got multimillionaires who are foreclosed on and you've got some real-life folks."