Laurie, Home Buyer in Mexicantown - Southw...

Can I let my house go back to the bank and purchase another one with cash from my 401k without any problems?

Asked by Laurie, Mexicantown - Southwest Detroit, Detroit, MI Thu Mar 31, 2011

My house is only worth about 30k but I have a 70k mortgage.

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If you are looking for a guarantee that the first bank will not pursue you for the amount you owed, I would suggest you speak with an attorney. Some people have been successful in negotiating short refi's, where the loan amount is actually reduced and part forgiven. Then you could stay in your house. It might be something you could discuss with your current lender.
1 vote Thank Flag Link Sun Apr 3, 2011
Maureen Fran…, Real Estate Pro in Birmingham, MI
You should speak to an attorney about the consequences of a "strategic foreclosure" that you're talking about.
0 votes Thank Flag Link Thu Mar 31, 2011
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