And that’s exactly what he’s done- off the grid in that regard, and working when he can for cash until he finds something permanent. But, job prospects for someone mired in debt, with bad credit, no bank accounts, without steady employment for two years, and living with his mother? I guess that’s a topic for another forum. Something titled “$75K to living with Mom” perhaps?

In your research, did you find if retirement accounts were protected assets during bankruptcy? If I remember correctly, part of the newer bankruptcy provisions allowed for stronger protection of retirement accounts in that bankruptcy filers could hold on to these assets. Just curious. Thanks!

Also, if he banked with USAA and the mortgage was with USAA, they may have had an agreement to be able to do the levy without court approval. It may have been embedded within the customer agreement, etc.

He tried to work out a short sale but that fell through, either no takers, or something on the part of USAA. Its a pretty economically depressed area. He also tried to arrange a deed in lieu, but no dice.

So, he gave up and has recently exercised option #3. His mother was diagnosed with cancer so he left the state and moved in with her to help out, and to increase his employment options. The only saving grace there is that he has friends keeping an eye on the house so it isn’t vandalized, but its a huge liability.

What a mess.

1) Your friend could simply continue to live in the house for free until the bank decides to foreclose on him. I wouldn’t really consider it ‘bad’ to do so IMO, its not as if he’s taking advantage of the bank, he seems like he *wants* them to foreclose. Free rent might help him get back on track financially eventually and he could even get caught up on payments.

2) He could look into a ’short sale’. Thats if he finds someone to buy the home for less than what is owed and the bank agrees to it. Say he owes $150,000 and the home is only now worth $100,000. The bank might be happy to wash their hands of the situation for the $100k and take the $50k difference as a loss.

3) If all else fails and he needs to move out of the house and move on with his life, he could ‘walk away’. That would be simply abandoning the home for the bank to eventually take over when they get around to it. But there could be consequences to doing this. He could owe the bank the difference in the loan still. IMO he’d be better of with option 1.

Problem is the bank doesn’t want it either and won’t foreclose. Two attorneys told him that he can’t file for bankruptcy and clear his debt unless there is a judgment against him for the house. I know most people want to keep their home in bankruptcy, but he’s just the opposite, is he just out of luck?