Posted on: 11th Nov, 2010 06:57 pm
Are DROP (deferred retirement option plan) funds protected if I do a short sale? I understand my 457 money is protected, but what about my DROP money? I will be retiring in June 2011 and will receive a lump sum payment of my DROP funds. I called a realtor out to sell my home planning to pay the $90,000 I'm upside down with my retirement money (DROP) but he said I don't have to use retirement monies to do that - that I should do a short sale instead. Does this sound right? I live in Florida.
Welcome Tppiper,
Retirement plans are protected. Lenders/creditors cannot garnish your retired funds to recover their dues.
Retirement plans are protected. Lenders/creditors cannot garnish your retired funds to recover their dues.