Can a Homeowner in Foreclosure Lose Her Retirement Savings?

[Glenn C]

Hello-

I'm in the process of doing a short sale for a homeowner who is upside down on her property and behind on payments.

She told me she has close to six-figures in her 401k and some annuity from a previous employer. She's stressed out that she's worried the bank will confiscate her retirement money because she's losing her home to foreclosure.

Anyone ever crossed this bridge before and know what the legal scoop is regarding this? Can her bank seize her retirement money since she's walking away from her mortgage committment? Or is it off limits and she doesn't need to lose anymore sleep over it?

Anyone suggest where I could get these answers so I know in the future how to handle this with confidence and provide some peace of mind to my client?

Thank you for any help you can provide.

Regards,
GJames