Using Retirement Funds to pay your Mortgage is just a bad idea

by Dan Havey on August 23, 2011

Join Real Estate Marketing This Week as we discuss the world of Real Estate and Mortgage Marketing. We shot this video of our Radio Show as an example of how you can use one piece of content in many different ways.

If You Don’t See The Video, Click Here => Real Estate Marketing Video

To Jump To Part 1, Click Here => Real Estate Marketing Part 1

Part 6
Brett: So it doesn’t matter if it is a $100,000 property or a $500,000 property the cost to the lender is $50,000 on the average nationally.

Michael: Essentially yes.

Brett: So the idea of the upside down scenario you may see banks more willing to entertain a broader audience of loan modifications or a broader request of loan modifications based on the fact that they know that now what we are calling toxic assists not only exist on their balance sheets but they want to do something to avoid the additional cost of foreclosing on the property to avoid the additional impact on our economy nationally with all these foreclosures mounting. So a loan modification that may not be the best or most ideal candidate today don’t throw the option completely out of the window.

Michael: and to that point I would never tell a home owner to stop making their payments just to get a better loan modification because as of today, this may not be the case two weeks or two months from now but as of today, your servicer is not going to entertain a loan modification unless you’re late in most cases, here’s the situation though at first you may get mad at that and they get mad at me for it but the reality of it is we have a real problem now with lots of people who are two three four months behind on their mortgages this loan modification we are jumping into their business we are getting attorneys involved and getting right in front of the asset managers or the attorneys for the servicers to get these foreclosure proceedings stopped.

I am absolutely certain that in the foreseeable future they are going to allow people that are not late yet to do these loan modifications, hold on I said I would never tell a home owner to not make their mortgage payment to get a loan modification, the other thing I would never tell a homeowner to do never ever is to take money out of your 401K to pay their mortgage payment because you can’t go forward. There are other stops in place, if you don’t make your mortgage payment because of hard times you are going to get a loan modification. I talked to a guy the other day that had a 23 year huge 6 figure income he lost his job big huge firm here in the valley, he is probably listening to the show right now, this guy drained his entire 401K, I mean a huge one just to make his mortgage payments.

Brett: and the average 401K participant, investors does not understand the ramification of what that is just because your company plan allows you to take a loan against your 401K doesn’t mean it is the right thing to do. There are ramifications beyond our time and the scope of this discussion regarding that decision. Loan modification first, if you are taking money from a 401K to make a house payment you are not only inefficient in creating the velocity of money but you are costing yourself in penalties, taxes, and that is certainly something we can be forthright about talking with anyone who wants to call 1-888-mod-Info for information.*

Michael: and in this case the poor guy used up every dime of his 401K because his lender told him NO, NO, NO three separate times because he was not late, well he wasn’t going to allow that to happen. Unfortunately knowing what he knows now he would have looked at it differently. Loan Modification is not for someone who has no income at all, the investor the servicer the bank that holds your mortgagee is not willing to do a loan modification because you do not have the means to pay.*

Brett: Even if it is a modified loan, you still can’t make the payment.

Michael: Right in some cases where you have significant cash reserves but I have not seen one of those done.

Brett: That wouldn’t be the ideal candidate, describe little bit about who should be doing this loan modification and I know we are getting close to a break but people need to know that this option exists. They are hearing all these different concepts in the news and they are hearing in the media the spin about hank Paulson and what the treasury is doing and hearing about this bailout package and what that represents and now they are hearing that the money is not going to be used to buy back bad loans, and mortgages, bad assists. So what does that do to the underling holder of that mortgage? The owner of that house?

Michael: It is pretty scary for the majority of them the loan modification, lenders are getting very aggressive when being approached with a lawsuit or being addressed by an attorney, receiving a subpoena in regard to a specific loan case. They are paying attention to that and those are the people who are going to be getting the best options at this time.

Brett: Somebody feeling this economic pressure, they may be behind on their mortgage payments by one, two, maybe three. What do they need to do? What step do they need to take?

Michael: Call 1-888-MOD-INFO or go to modificationhotline.com and we will be back in just a few moments.
Real Estate Marketing This Week

Related Posts:

Tagged as: , , ,

Previous post:

Next post: