[quote=GoUSC]To answer your point though…why should the bank help Bob if he actually has the money in hand. In fact why should Bob even consider keeping his house if the only way he can is by divesting his 401k.
If you can no longer afford your house…then you can no longer afford it. A certain percentage of people should be renters…and might always be renters. That is just the way it goes.
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I agree with this. Too many people bought more house than they could afford. “Bob” has options: he can divest one asset (401k) to keep another asset (the house). Or he can keep his 401k intact and do a short sale or go for forclosure. He’s not obligated to go the loan mod way.
