Foreclosure looming, what to do with my money?

[anjaru_sbcglobal_n]

I bought a house last year right before everything went to hell. I intended to live in it for some time, but with the market tanking and the value of my home dropping 50%, it's best for me to just walk away and lose the 20k I put down on the home. I live in CA - does the bank have the right to go after my other assets such as my car and bank accounts, CDs, retirement account?

[Michael_B]

Don't walk away.  You have to live somewhere and at least pay rent.  The bank can and will go after you for the difference between what they sell it for and what you owe.  Sit tight for a few years and the price will come back up.  Maybe it won't come all the way back up, but it will come closer than it is now.  Also, the government is likely to come up with some mortgage relief in the near future.