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Borrowing from 401K to save home.

Posted on: 12th Sep, 2008 04:17 pm
Great advice on this forum!
I am very close to end up in foreclosure, I lost my job to layoff and I already contacted help agencies to no avail, e. g. HOPE, VA, credit counseling and so. I am growing desperate and the only help I have is my 401K. Would this be a valid instance where cashing it out to pay late mortgage payments apply?
Hi Abel,

Welcome to forums.

I don't think borrowing from 401k to save your home is a good option because you'll be depleting the finances that you've kept for your retirement years.

What are the help agencies suggesting by the way? I think you should talk to the lender in this regard because he's the person who can help you with a payment plan or forbearance and the like.

Thanks
Posted on: 12th Sep, 2008 10:45 pm
Do not borrow from your 401k to save the house unless you have a large amount of equity and are going to use the 401K to make payments until it's sold.

If little or no equity just let it go, I know it's tough sometimes but don't let a house end up a money pit.
Posted on: 13th Sep, 2008 03:15 am
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