Thanks for sharing your personal experience. You have a lot of courage to share publicly what is going on at a personal level. I hope things work out for you. The only thing I hope you don't do is don't cash your 401k. It's suppose to be your retirement nestegg. I could be wrong about this (and someone correct me if so) but I believe 401k accounts are exempt from creditors. Someone please confirm. If the bank can't work things out for you, I'd also recommend walking. Yes it's a ding on your credit. But you aren't going to be the only one, and after 7 years, when you're ready again, you can approach home ownership again. You might though want to secure if a rental place before this though.
