Here is my story: 1st time home-buyer in 2004 with adjustable rate. Refinanced in 2006 to a fixed rate, but also took money from equity to remodel. In 2009, my husbands job disappeared and we have since been making ends meet on my salary and a reduced income for my husband. I have had the same job since 2000. I submitted an application for home modification to Bank of America and was rejected. We received the rejection letter two weeks ago. They said the reason they denied me a mortgage modification was that I was current on my mortgage at the end of July. I am only current on my mortgage because I have dipped into my 401k repeatedly over the last couple of years to make ends meet (considering where I am now, I wish I hadn't done that - its all gone). Well, no more. I am choosing to walk away - strategic default. I've been behind on my payments before, but this is the first time I have done so knowing I will never willingly send them another payment again. The person that handled my application and subsequent denial of modification from Bank of America called me today to follow-up. I'm not sure if I should call him back or communicate with them at all considering what I've decided to do. Any advice from anyone reading would be welcome.