Hi - my name is XXXXX XXXXX I'm a Real Estate
litigation attorney. Thanks for your question.
I'm sorry about your situation, but I do have a bit of good news - because you want to take out money in order to prevent foreclosure, you should be able to do so without incurring a penalty. In many cases, you will be able to qualify for a hardship distribution of your 401(k). This will allow you to take out the money without any penalties. Another way that you could do this is to use a 401(k) loan. This will allow you to borrow money from the 401(k) and then pay it back with a specified amount of interest over time.
You need to contact the lender and ask what amount you need to prevent the foreclosure/a payoff of the loan. Also, you would need to ask for a deadline to pay the money to prevent foreclosure.
Once you have that information, you can contact your 401k administrator and ask to apply for a hardship withdrawal application to recover the funds. This process usually takes 30-45 days, so you need to get the wheels turning as soon as you can.
Although this will obviously take some of your retirement money away from you for future use, it will allow you to keep your house and avoid foreclosure.
I hope I've answered your questions, but if you have others, please REPLY and I'll be glad to respond. Thanks.