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I'm Doing A Short Sale, Can My Lender Take My Retirement?

By
Real Estate Agent with Sotheby's & Knipe ERA 201232626

I'm Doing A Short Sale, Can My Lender Take My Retirement?

One of the top questions we get asked is what happens to the retirement accounts when doing a short sale? Here is the info.

401ks, 403bs and Pensions

Your lender is not permitted to "raid" or liquidate employer-sponsored 401k, 403b or pension plans thanks to ERISA, the Employee Retirement Income Security Act. In fact, other than the IRS or former spouses, these accounts are protected from all creditors. It is never considered advisable to liquidate or borrow against your retirement savings to save your home. If you recently rolled over money from an employer-sponsored plan into an IRA, that money is protected as well. Be sure to save your account statements that show the rollover.

 


Posted by

Kim And Kristine Halverson

Compass

2115 Main St

Santa Monica, CA 90405


call: 310-737-8173
web:  www.KimAndKristine.com

 

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Jim Patton
Aspire Home Real Estate 209-404-0816 - Modesto, CA
Realtor - Stanislaus ,Merced, San Joaquin Counties

Good information Kim and Kristine.   I've gotten that questions a few times myself.

Mar 11, 2013 09:46 AM
Sussie Sutton
David Tracy Real Estate - Houston, TX
David Tracy Real Estate for Buyers & Sellers

Good post. I don't do short sale (gasp!) but if I ever do; this is the type of information I would most likely need.

Mar 11, 2013 10:03 AM
Erika Rogers
Red Rock Real Estate ~ Southern Utah's Largest Independent Brokerage - Saint George, UT
St George Utah Real Estate & Relocation Specialist

Hello Kristine, this is very informative and easy to understand. This will surely prove very helpful to all readers out there. 

Mar 12, 2013 08:36 AM
Waynette Hoover Araj
Keller Williams Realty - Asheboro, NC
Connecting your Dreams with the Right Real Estate

Great post Kim & Krisine. This is very beneficial to everyone planning to do a short sale. Stay being the number one Santa Monica Short Sale Agent.

Mar 12, 2013 10:51 AM