Can a Homeowner Lose Their 401k/Annuity in Foreclosure?

[Glenn C]

Hello Everyone!

Been quite some time since I've visited this neck of the woods. Good to still see lots of activity here, and probably 20k new members since I was last here.

I don't know if this forum is the place to ask this question or not, I thought maybe the legal forum....but here I am so I'm going to run with it here.

I was in the process of doing a short sale for a friend of mine whose sheriff sale is scheduled for Apr 16th. I contacted one of her 2 lenders a couple days ago (WaMu) to get the scoop on who the loss mit rep is, the numbers, ect. I was told there is no loss mit rep assigned to her file and in order to consider a short-sale she must've had her home listed for 90 days prior. Say what?
WaMu was not in the least bit interested in anything remotely short sale. After that conversation I didn't even bother calling her 2nd mortgage, Countrywide.

Is this common, no loss mit rep assigned to a file? Never heard of such a thing. What is WaMu waiting for, a Gov't bailout too?

Now here is my second dilemma...and the reason why I was going to attempt a short sale initially. My friend has close to $100k combined in her retirement accounts, a 401k and some annuity. Seeing she's completely upside down on this home and now in foreclosure, does her lenders have any recourse to actually seize that retirement money she has since she's defaulting on her loans? Anyone know what the policy is with this? What if she files for bankruptcy? She's worried sick they're going to find a way to take her retirement money, which has already lost plenty compared to a couple years ago.

Anyone offer some knowledge about this firsthand without the "best talk to an attorney" reply? Anyone familiar with this or beeen down this road before can give me some input?

Thanks for your time,
Glenn