House Underwater...Looking To Buy Another?
So I am 64 and getting ready to retire at 66 or 67. We are really interested in Florida. A condo or townhome.
But here's the issue. Our current home is underwater. Sure I made a mistake of buying at the peak. Paid $240K in 2005. It's now worth maybe $190K. If the market does not pick up considerably in the next 2-3 years, I am considering walking. I am in Arizona where the law says the mortgage company cannot come after me. I have an 80/20. Both me and my wife's current credit score is near 800. We have no bills except the 2 mortgages and normal household bills.
I don't have a lot of available cash to put down. I do have a 401K that despite the "never touch it" recommendations I have been reading, it's my money and I should have access to it. I would like to access $50K for a down payment. I know I would be liable for federal and state taxes. I'm good with that. I can pay the taxes now or later, what's the difference (besides a lower bracket later). Right now after deductions, I am in the 15% bracket.
So does anyone know how I can access my own money? As I understand it, you have to retire from the company or be in some hardship situation. I am in neither. Like I said, I'd like to purchase the Florida property now or within the next year while I am still working. When I retire, I will have roughly $50K of income/yr from a pension and SS.
Ideas?