Talk to a lawyer many give free innitial consultation and be sure what laws are in your state. In many states of a property is foreclosed the lender can still come after you for any deficit between what is owed and what they get reselling it.
It could be worth your while to pay the tax on removing money from or borrowing against the 401K to save your credit. If you have not tried negotoating with lender and there is any way you can make current payments even if can't catch up back see if they will put delinquent payments on end of loan term. Also see if they will go interest only for a few months. Our lender did the add on the back end when I was out of work and I have seen the interest only done too. That way you keep a foreclosuere off your credit rating and have a chance to improve your situation or sell the thing for nearer value owed. Of course if your circumstances are such that you absolutely can not pay that is different but if you have an active 401K you are prolly working and the lender may well work with you on this.
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10-01-2007, 01:41 PM
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