When will you walk away from your mortgage ? use no 401K money to keep it

[KILL THE WISE ONE]

When do you say "I am not paying anymore"?

if you are thinking about it, there are a few things you need to know.
In some states (AZ) if the house is foreclosed on, the borrower is NOT liable for the shortage between what is owed and what the banks sells the house for.
This may only apply to "purchase loans" in some states.
You may owe income tax on the money you stole (that is the way they fazed it to me) from the mortgage holder.
The federal income tax has some relief from this in 2009 income tax year, I assume it will remain for 2010.

NEVER NEVER USE 401 K OR other retirement funds to pay your mortgage.
The reason for this is that in most states this money is protected from creditors even if you declare bankruptcy.

You can live in you house for 6 to 12 months depending on the backlog at your lender.
Stash cash during this time. this means actual dollar bills, preferably 20's, stuffed in a safe place.

check out your state laws do not do this out of ignorance! most states have a website you can use for this.
make an appointment with a bankruptcy attorney. quiz him or her for the laws in your state.

Pay your other bills on time. 18 months later my credit score is back to 699 and I walked from 460K mortgage.

www.nytimes.com/2010/02/03/business/03walk.html

[JoeyTrib]

1. Thank you for this information.

Thank you.