I am unemployed and going to school full time. I am 51 yrs old and have a daughter who is 23. My questions is I bought a house in AZ in 2006 without a job. The bank aproved me for a morgage of 250,000 dollars. I had just moved here and they assured me that I could find a job easily and they appraised the home I was interested in for $248,000. I bought it with over $95,000 down and closing costs. I got a job and with the help of my daughter working part time and going to school, I was barely making it. I got the opportunity to get into a college for Physical Therapy Assistant. I will be starting in August of 2010. I do have a small retirement plan from my divorce. My question is that with the rates on homes coming down, can I withdraw money from this plan and my daughter and I go in on a home together that only costs $99,900 and is in alot better shape than the home I live in now? I owe more on my home it than it's worth. I still owe $144,700 and my home is now valued at $115,000. The home next to me that I am interested in is the same model as mine and is going for $99,000. To get my home up to any value it will need new windows, doors, floors, landscaping, and roof. So my long question is if we go together to purchase a lower priced home will there be any legal ramifications in the state of AZ by doing this and deed in lieu foreclosure on my current home. I tried when I was working to get my home modified but they told me I wasn't eligible for a modification or refinance. I feel I will wreck my credit but I also feel my bank was negligent on approving and encouraging me to purchasing this home without a job, which I in good faith put all my money into purchasing it and now owe more on it than it's worth. I have put so much money into this home, with such a large down payment. If I was to stay in this home and fix it up, at the end, with my $95,000 down payment and almost $50,000 in renovations, plus the home payments themselves, this house will end up costing me well over $300,000 plus interest and is barely worth $115,000. This to me seems ludicrous to stay and keep throwing money away. Thank you in advance for your help and I apologize for such a long question.