“But remember, you aren’t the victim (and I don’t think you see yourself as the victim, which is good); the institutions who are going to absorb your loss are.”
Banks are in the business of lending money. They take a risk for the right to the interest they earn on their money. This borrower never defrauded the bank. It might not work out the way either party hoped but I don’t see a victim.
I won’t lose sleep when WAMU, Countrywide, Merrill Lynch or any other instituition loses money on an investment. It is a game that they play and in the end they will play right more than they play wrong.
Right now djrob has the tough choice of deciding whether the initial capital he used is at this point a SUNK cost or if there is still some intrinsic value in holding his property.
I tend to think that 401K should be a lock box principal so I agree with many of the othe posters who have suggested not raiding it. I also know others who see the 401k as a guarantee fund that can be thought of as an interst free loan. People have differnt way of looking at their money.
One thing that people havn’t thrown out there is the fact that if you continue to hold on and the environment deteriorates further the Federal Governemtn may step in to help the banks which might mean more potential to help you. Buying some additional time might not be a bad thing as there is a lot going on at the moment and with an election year coming up the Republicans are going to do what they can to save face. That might mean buying votes by trying to save peoples homes.