No one wants to lose their home to foreclosure.

We have an emotional attachment to where we live. It only takes a few birthdays and holidays, family reunions and graduations to create memories that last a lifetime.

But it's also an investment -- an increasingly bad investment for millions of Americans stuck with adjustable-rate loans they can't afford and homes that are losing value every day.

"If you're facing this situation and you truly can't afford to make the payments, you shouldn't put more money into the property," says John Ventura, author of The Credit Repair Handbook and The Bankruptcy Handbook.

Could it be time to accept the inevitable, cut your losses and walk away?

Here are eight reasons why it might make financial sense to stop making the payments and allow the bank to repossess your home.

The more reasons that apply to you, the stronger the case to walk away and begin rebuilding your personal and financial life.

Reason 1. You can't modify your mortgage.

Between 2004 and early 2007, banks and mortgage companies systematically pushed consumers into adjustable-rate loans they could never hope to repay. The lenders didn't care because they collected big fees for originating the loans and sold the debt to investors who didn't seem to know, or care, what they were buying.

That's why one in four subprime loans -- high-cost mortgages pushed on minority borrowers and consumers with bad credit -- are now in default or foreclosure.

Homeowners are flooding lenders with requests to reduce their interest rates or extend the terms so that they can afford the payments. (How to save your home from foreclosure has lots of advice on how to do that.)

But the Center for Responsible Lending says lenders are foreclosing on three loans for every one they restructure. And the Washington, D.C.-based consumer advocacy group says there's no way to know how many of the restructurings "created sustainable loans, and how many did not reduce unaffordable payments and therefore only delayed foreclosure for a short period of time."

The harsh truth for the great majority of troubled borrowers is that their lenders won't help them and they're stuck with a mortgage they can't afford.

Reason 2. You have little or no equity in the home.

Equity is the difference between what you owe on your mortgage (or mortgages if you have more than one) and how much your house is worth.

Most homeowners who have little or no equity put little or no money down when they purchased their home or cashed out whatever equity they had through home-equity loans or a refinancing.

With home prices stagnant or falling in many cities, you might even be underwater on your loan, which means you owe thousands of dollars more than it's worth. That makes it virtually impossible to refinance or sell your home.

Reason 3. You're draining your retirement funds.

Depending on money from your IRA or 401(k) accounts to keep up with your mortgage is a bad idea.

When those savings are gone, your financial future is in jeopardy and you could still lose your home.

The only exception is when you're dealing with a temporary financial crisis.

If you or your spouse can't work because of an illness or family emergency that will resolve itself over a few weeks or months, do whatever you can to keep up with your mortgage, even if it means tapping your retirement savings.

But if the payments have soared beyond your regular income, don't waste your retirement savings to postpone the inevitable.

Reason 4. You're falling behind on other bills.

Foreclosure will wreck your credit score. But so will missing payments on your student loans, credit cards and utility bills.

In fact, having lots of black marks on your credit report could do more damage than a single foreclosure. And if you don't pay lots of other bills and still wind up defaulting on your mortgage, that's the worst of all worlds.

Reason 5. The tax man is calling.

When a lender repossesses your home, it has the right to sue you for any costs or losses it incurs. But banks and mortgage companies usually don't do that because former owners have very few assets they can seize, even if they win.

But if you owe back taxes to the federal government, the Internal Revenue Service will pursue you to the grave, no matter how little you have.

It will go to all sorts of extremes, including garnisheeing your wages, and a black mark from the IRS can prevent you from getting a job.

So if you have to choose between paying your mortgage and paying the IRS, Washington wins.

Reason 6. You're about to go bankrupt.

While foreclosure will wreck your credit, it won't do as much damage as filing for bankruptcy. If dumping your mortgage will keep you out of court, foreclosure is the better option.

And remember, bankruptcy can't wipe out mortgage debt. (Click here to learn more about bankruptcy and foreclosures.)

Reason 7. You're defaulting on a second property.

It's especially important not to let the mortgage on a vacation or rental home push you into bankruptcy or put you at risk of losing your primary residence.

Reason 8. You're suicidal.

No, we're not being overdramatic.

Debt is a psychological issue, and analysts, creditors, credit counselors and advisers report that they're always meeting people who are incredibly depressed about their financial situations to the point where suicide seems an option.

Yes, a home is a big investment, but it's not worth losing your life over. If the threat of losing your house is keeping you up at night -- or leading your thoughts down a dark path -- get help right away.

If, after reading this, you think foreclosure is the right way to go, there's one more thing you should do before abandoning your home.

Get the opinion of a reputable credit counselor.

We recommend a member of the National Foundation for Credit Counseling, the nation's biggest and oldest credit-counseling organization.

Its 120 agencies abide by a set of professional and ethical standards that have served many individuals and families very well over the past 50 years.

Click here to find a credit counselor in your area. Click on the individual agencies to find everything from costs to office hours.

The fees will be modest and their experienced credit counselors, who negotiate mortgage restructurings and debt repayment plans every day, will know if things are really as bleak as you think.

By Jen A. Miller

Interest.com Contributing Editor

Have a question about your finances? Ask us at editors@interest.com