I heard an interesting thing from our mortgage broker today. He said that if you apply for a loan mod the bank will require you to divest your 401k/IRA money and contribute that as equity. Basically he said the banks want to see you are spending every last penny to stay in the house.
Oh no! We don’t own a house. We wrote an offer on a house where the seller is trying to do a loan mod (if that doesn’t work they will do a short sale) and I was just chatting with him about it.
Oh no! We don’t own a house. We wrote an offer on a house where the seller is trying to do a loan mod (if that doesn’t work they will do a short sale) and I was just chatting with him about it.
Oh no! We don’t own a house. We wrote an offer on a house where the seller is trying to do a loan mod (if that doesn’t work they will do a short sale) and I was just chatting with him about it.
Oh no! We don’t own a house. We wrote an offer on a house where the seller is trying to do a loan mod (if that doesn’t work they will do a short sale) and I was just chatting with him about it.
Oh no! We don’t own a house. We wrote an offer on a house where the seller is trying to do a loan mod (if that doesn’t work they will do a short sale) and I was just chatting with him about it.
I don;t know the answer, but I would assume that the loan mod might depend on assessing the borrowers capability to pay (if they desired) and at least disclosing retirement account balances is probably part of that process. If I were the borrower trying to mod, I would not sacrifice my 401k (the main reason being that a large chunk would be lost to taxes and penalties).
Either way, be prepared to wait a long time for the outcome.
I don;t know the answer, but I would assume that the loan mod might depend on assessing the borrowers capability to pay (if they desired) and at least disclosing retirement account balances is probably part of that process. If I were the borrower trying to mod, I would not sacrifice my 401k (the main reason being that a large chunk would be lost to taxes and penalties).
Either way, be prepared to wait a long time for the outcome.
I don;t know the answer, but I would assume that the loan mod might depend on assessing the borrowers capability to pay (if they desired) and at least disclosing retirement account balances is probably part of that process. If I were the borrower trying to mod, I would not sacrifice my 401k (the main reason being that a large chunk would be lost to taxes and penalties).
Either way, be prepared to wait a long time for the outcome.
I don;t know the answer, but I would assume that the loan mod might depend on assessing the borrowers capability to pay (if they desired) and at least disclosing retirement account balances is probably part of that process. If I were the borrower trying to mod, I would not sacrifice my 401k (the main reason being that a large chunk would be lost to taxes and penalties).
Either way, be prepared to wait a long time for the outcome.
