Any experiences with Homeowner's with Hardship and Assets i.e. IRA, 401k accounts?

Hey everybody!

Has anyone had experiences with individuals holding assets but having genuine need for a short sale and how Lender's have been handling this?  Thanks!

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Your client does NOT have to declare 401K or IRA info to the lender, these are protected assets, they can leave these boxes blank on the financial info worksheet & if the lender asks about it, they can do a 'declaration' of sorts stating that they don't want to reveal those types of assets. Ask an RE attorney, because I'm not really sure what form one would use to do this. I learned this recently from a highly trusted source.
Hi Emily, thanks for the comment .... makes sense.

Emily S. Knell said:
Your client does NOT have to declare 401K or IRA info to the lender, these are protected assets, they can leave these boxes blank on the financial info worksheet & if the lender asks about it, they can do a 'declaration' of sorts stating that they don't want to reveal those types of assets. Ask an RE attorney, because I'm not really sure what form one would use to do this. I learned this recently from a highly trusted source.
Hi. Emily is correct. My client has a job and is barely making it. He does have other assets such as 401K. It is definitely protected. I am not an attorney, but I am sure of this.
Hi All-

I'm having this problem with a couple of my seller's right now. One in particular has 3 investment properties that they are trying to get rid of right now. They do have assets in their retirement funds but they are an elderly couple (mid to late 70's) and cannot retire because they have these properties. The husband (income provider) is a doctor and has seen a significant reduction in income. I've had 1 lender come back to me on one of their properties that they need the full payment or they will not approve the short sale because they can "see" that they have assets - however we have never provided any info on their retirement plans or stocks. Then on another property, PNC is the junior lien and we offered 10% of their balance, so roughly $9,400 and they came back stating that they are denying that offer and requesting $40,100 to release the lien and $57,000 to release the deficiency. HELP! There is no way these sellers can come up with any of this money or they will not be able to retire.

Any ideas would be MUCH appreciated!
Seems to me that you have to refer your clients to seek legal advice from asset protection attorney.

Lauren Shimmon said:
Hi All-

I'm having this problem with a couple of my seller's right now. One in particular has 3 investment properties that they are trying to get rid of right now. They do have assets in their retirement funds but they are an elderly couple (mid to late 70's) and cannot retire because they have these properties. The husband (income provider) is a doctor and has seen a significant reduction in income. I've had 1 lender come back to me on one of their properties that they need the full payment or they will not approve the short sale because they can "see" that they have assets - however we have never provided any info on their retirement plans or stocks. Then on another property, PNC is the junior lien and we offered 10% of their balance, so roughly $9,400 and they came back stating that they are denying that offer and requesting $40,100 to release the lien and $57,000 to release the deficiency. HELP! There is no way these sellers can come up with any of this money or they will not be able to retire.

Any ideas would be MUCH appreciated!

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