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I am unemployed for last 7 months. I have taken out a mortgage few years back. The total mortgage amount is $451,547. I was making payments on mortgage when I was working. But once I lost my job, I could not make any payments. The present market value of my house is $298,000 and I owe around $345,000. i want to go for short sale but my lender would not approve it. I have some money in a 401(k) account. Can my lender take out all the money from the account? What should I do to get out of this situation?

Unless your lender approves a short sale, you won't be able to sell off the property. If the lender approves your short sale and the property is sold off, you'll be liable for paying the deficient balance resulting from the sale of the property. However, the lender may not be able to garnish the amount that is in your 401k account. Retirement income or pension accounts are exempt from garnishment.

Sub: #1 posted on Wed, 05/04/2011 - 02:42

Anna Sweeting Anna Sweeting

(Posts: 1827 | Credits: )

Dont touch your 4011k.

I would walk away from it....if they come after you, file bankruptcy.

Sub: #2 posted on Wed, 05/04/2011 - 03:09

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