Sad, but this family is in for worse financial crisis in the future. With his credit effectively shot for the next 7 years and his mortgage company likely garnishing his wages at his job, he'll have even less to bring home to the family.

This is the type of fatal financial decision that can hound you for years and years to come. If he switches employers or loses his job, he'll have 60 days to repay the loan on his 401(k).

Nothing like flushing the financial toilet.....twice.