djrobsd again thanks for posting this info, it’s very enlightening. I don’t buy foreclosures and don’t think there are many shills for the foreclosure industry on this site. I would not benefit at all if you walk, except for a little schadenfreude and hopefully in a couple years prices can justify buying a home.
On blogs there are people who are frank and people who are dick (I stole that line from Planet Terror). If I were you I would be frank and tell your bank you’ve got your 401(k) and there’s no way in hell you’re going to raid it. There’s nothing they can do unless you’re in some kind of recourse loan. Don’t be scared of the bank, at this point you may wish to be completely forthright with them to see what kind of solution they come up with. If you provide them with false information it might bite you in the arse later. The bank might say “it’s OK to raid your 401(k) because if you invest it in the house it will be your nest egg in the future” but you just tell them “if I walk now I can keep the 401(k) I’ll worry less about a steep decline in value like in the housing market”.
Although one might say you were dumb, I think we can all agree that the lender and the fed were just as dumb and it took 3 to tango. Borrowers blame the lenders, lenders blame the fed, I don’t know who the fed is gonna blame (probably back on the borrower for false “stated income” or perhaps they’ll offer up Greenspan for the sacrificial fire).
