Under Georgia law, a debtor's property is exempt if retained in an ERISA-qualified retirement account, such as an employer 401(k) or IRA account. Regular savings, brokerage, investment, checking, or any ordinary bank accounts are all subject to seizure by a creditor to satisfy a deficiency judgment on an unpaid home mortgage balance.
The typical way out from this dilemma is to file for Chapter 7
or 13 bankruptcy, and wipe out the deficiency, and any other unpaid debts. Your 401(k) would remain safe.
If you can make direct contributions from savings into the 401(k), you might want to consider making them, because by doing so, you would protect those contributions which might ordinarily be subject to creditor seizure.
Most people tend to reject bankruptcy as an option without giving it any thought. While it may seem like a surrender of one's moral values, it is frequently the only way to get a fresh start on one's financial life, and it is nothing to be ashamed of.
Walt Disney, Abraham Lincoln, Milton Hersey (chocolatier), Henry Ford, Mark Twain (Samuel Clemens), and Donald Trump (four times) -- all filed bankruptcy, and came back in pretty good shape.
If you would like to contact a local bankruptcy attorney to discuss your options, and you need a referral link, please let me know and I will be happy to provide.
Hope this helps.