401k: Can't Handle The Mortgage Payments Anymore? Stop The Insanity With A Short Sale - 05/30/11 03:07 AM
Are you having difficulty paying your mortgage payment?
Do you need to get rid of this house but you owe more than it is worth?
Do you feel that if you got rid of the high mortgage payment you could handle your other obligations?
Are you falling behind on bills just so you can make the mortgage payment?
Are you unable to pay your medical bills just so you can pay your mortgage?
Are you afraid you will lose the house to foreclosure and the bank will garnish your wages?
Are you borrowing money to keep your mortgage payment current?
Are … (5 comments)

401k: Can a Foreclosing Lender Take The Borrower’s IRA or 401(k) in a Short Sale? - 08/26/10 11:24 PM
 
The summary answer is "NO". A short sale is a voluntary agreement between the short sale lender and the borrower who is selling the property for less than owed. The borrower is not obligated to accept the terms of the short sale or any of the lender’s demands. The short sale lender can't "take" the 401(k) but the seller may voluntarily give it up.
Likewise, the lender is not obligated to agree to a short sale.
If the short sale lender stipulates that the seller must cash in their protected retirement fund and contribute it at closing, the seller should … (6 comments)