By: bobbi swann

bobbi swann — Fri, 18 Jan 2013 14:31:32 +0000

Let me give you some insight from a mortgage broker view. I cannot tell you how many clients are tapping their 401K accounts for home purchases, especially now here in Florida where homes are such “bargains”. Oddly enough, the value that can be used as far as underwriting purposes is only 70%. i.e. whatever they have in 401K underwriting only recognizes 70% of that total as being actual funds. That should tell us all something when there’s a 30% setaside. Can anyone (besides Obama) spell recovery? The 30% is supposed to represent taxes and penalties but when it’s a loan against the 401K the instrument still remains tax free, as long as the borrower never defaults on the loan against it. And here we have the question: but why would a borrower default on a loan? Oh yeah, I almost forgot…like all the politicians said all those people who defaulted are ‘deadbeats’! All these borrowers overextended themselves, so they said. Funny how all these defaults started occuring when the unemployment rose high above normal levels. Funny how people just did not have the money or jobs to pay their bills anymore. Funny how the foreclosures brought on by this high unemployment brought out the “fraud”, not the other way around! How many lawsuits were filed against banks by borrowers NOT in foreclosure? Then ask yourself what really caused the unemployment to soar to such levels? Like many others on this site for many years have touted that it was all a ponzi scheme from the beginning and I am talking about going back to the 90’s. It’s all there if you just do the research.

Comments on: 401(k) Breaches Undermining Retirement Security for Millions

By: bobbi swann