Hey, Congress is looking at a bill that will allow you to tap your 401K for up to $50,000 to help with a forclosure. It would have to be spent within 120 days of withdrawal and the amount would still be taxable. Here is a link to the article:
http://articles.latimes.com/2011/oct/16/business/la-fi-harney-20111016
This might save your home it it passes, so watch and wait.