Regardless you need to determine if you are in a recourse or non recourse situation with your loan. Seek the advice of a tax professional and a bankruptcy attorney to seek clarity on all the reprecussions of loan modification, short sale and foreclosure. The accountant and BK attorney will give you the best information as to how to allocate your retirement proceeds in this process. In general its NOT a good idea to use them to bail yourself out of the home but it depends on your situation.
Do you have any idea who Barney Frank is????? Legislators changed the rules so banks could gamble, and when things went really bad, Barney Frank said, WHAT CRISIS???? Fannie Mae and Freddie Mac bought up all the bad paper, artificially inflating prices, selling 1/2 million dollar homes to people whose income was ~30k/year. Responsible homeowners did not create this, but now we are paying the bill. Anyone underwater right now will be effectively RENTING their own home for the next 5-10 yrs until they can pay down prinicple enough, and prices stabilize more so, JUST TO BREAK EVEN!!!!!!!!!!!!! Anyone with that poor of an investment would DUMP it if they had half a brain.
I'm sorry, but it is not up to the little man individually to hold up the economy crumb by crumb while huge real estate developers walk away from bad investments, with little to no reprecussions; banks get bailouts while paying huge bonuses, etc, etc. This was a house of cards ready to tumble, and those of us who bought what we could afford are screwed. . Our retirements are already in the toilet.... Why would anyone continue to throw good money after bad into ANY investment, and YES, your residence IS AN INVESTMENT. Take the emotion, parental conditioning, WHATEVER, out of the mix and look at the numbers! JEEZ.
Would you be intterested in keeping your home if it made sense??
Have you considered a Loan Modification or settlement?
do you have one or two loans?
If you want to keep your home, an easy prequalification is this:
1) How much is your first loan? under $729k
2) Is your first mortgage more than 31% of gross income combined.
Is Home upside down?
If you have more than one loan, you may be able to settle the 2nd loan if they are underwater.
For example, if your first loan is 45% of your gross income, principal interest taxes and insurance you may be able to reduce it to 31% of gross income.
I am available if you need help.
Settle unsecured debt, mortageges and credit cards
925 699 5041
Why not just pay for the house? strategic means you could if you really wanted to and tried.