House Foreclosure - 401k Being Held Hostage

Discussion in 'UPS Discussions' started by upsman67, Jul 13, 2006.

  1. upsman67

    upsman67 New Member

    I've been trying to get a hardship loan for two months now. The house is behind in payments since March. The 401k administrator first denied the loan saying the paperwork from the mortgage company lacked what they needed for approval - the paperwork said that the loan was delinquent by four months. I'm no financial expert, but houses go into foreclosure when they get behind that far. Anyway, after several tiresome phone calls and ripping my hair out, they approved the loan. Now I get paperwork from a debt collector saying that my house is being sold in three weeks if I don't come up with the money. The 401k adminstrator keeps saying that "the paperwork's in the mail". This has been a two month process - and still no money. I'm going to lose my house because of their paperwork and processes. Does anybody know of anything that I can do???
     
  2. dave_socal

    dave_socal PACKAGE/FEEDER

    Well a lawyer would help slow the foreclosure and document times, dates, names, of everyone and everything you have done to get this resolved.
     
  3. fivestarJ

    fivestarJ New Member

    upsman67,
    I don't know what state your in, but the state that I live has a one year right of redemption. That means that you the owner has up to one year to buy your home back from whoever bought it at auction.
     
  4. dannyboy

    dannyboy From the promised LAND

    They can be a real pain. They will send it to you over night if you want to pay for it. Pretty much everything is really slow with them. Even when you quit UPS expect some problems and a wait time of several months.

    d
     
  5. ozzey

    ozzey New Member

    Hell if i were you i would just dump the house.. start over and take some kind of classes in manageing money. dave ramsey in the midwest has a great national radio showon responsible use of credit
     
  6. Dutch Dawg

    Dutch Dawg Active Member

    Lawyer? If a man doesn't have the cash to make a house payment, it seems unlikely he'd have the money to retain a lawyer. If you've ever dealt with an attorney, I'm surprised you'd think one would work pro bono or on a promise of payment in a case such as this.

    Dump the house and start over? Oh my... What if he has a $250k home with $170k in equity built up? Would you still make the suggestion to allow foreclosure, not knowing what got a person in this circumstance to begin with?

    Have you ask for any help from the union hall to expedite this process?

    Keep dogging the 401k administrators.

    Good Luck
     
  7. dannyboy

    dannyboy From the promised LAND

    Uzi just likes to make comments off the top of his head. See in his world, you owe 250.000 on the single wide trailer on the rental lot, 20 grand on the 83 Chevy pickup, and 30 grand on the credit cards.

    How do you figure
    I guess you paid for your house cash?

    Or maybe you never had someone that needed medical care beyond insurance? Or maybe some big losses you could not have expected, beyond your ability to pay?

    I have seen many drivers had to get into their 401K's because live dealt them a raw deal. Like our driver and his wife, each having to come up with close to 40 grand for lawyers to defend themselves in their sons death, and that after having to pay for the funeral expenses. So tell me there Uzi, in less than 6 months, coming up with 90 grand cash for you is no problem?

    Maybe you need to actually listen to ole Dave Ramsey instead of shooting off at the mouth like that.

    d
     
  8. dave_socal

    dave_socal PACKAGE/FEEDER


    Yes a lawyer, you should know that this is a legal proceeding! Plus this guy didn't say he was totally broke and futher more the union does have laywers that they work with(west coast) that will advise you over the phone because our dues paid a partial retainer pal.
     
  9. MEE

    MEE Guest

    Dave Ramsey? LOL I believe he went bankrupt long ago!
     
  10. upsman67

    upsman67 New Member

    Walking away from $50k equity would not be wise. Neither is assuming that we don't manage money well. We had serious health problems in the family this year.

    Having saved to my 401k for the past 17 years, I have quite a healthy account, for which, all I want to do is take a loan from to catch back up.

    So, it's not mismanaging or the lack of having the money - the money is there, but being held up by the 401k administrator for no good reason.

    I hope that this doesn't happen to anybody else. These guidelines UPS sets with the 401k administrator need to be lifted in the next contract. We all work too hard for some third party to say, "no you can't" to your own hard earned funds.
     
  11. wily_old_vet

    wily_old_vet New Member

    UPSman-Hope all works out for you. I could be wrong but I believe the limits placed on getting loans from your 401k are govt regs, not UPS. Maybe Wkmac or someone else more knowledgeble than me can confirm or deny this. The 401k is a Retirement savings plan, not a plan to save for lifes curves.
     
  12. upsman67

    upsman67 New Member

    The IRS does regulate part of it (penalties for early withdrawl, interest on loans), but UPS itself decides under what conditions (hardship, adoption, etc.) in which they will okay a loan. And they choose which company to administer it. If somebody wants to take a loan on their 401k (paying themselves back with interest), I see no reason why they shouldn't be able to.
     
  13. overniter

    overniter Guest

    I can only tell you my own experiance I am a new UPS employ (Overnite) I contacted my morgage company and they sent the paperwork to me I submitted it to Citistreet with prepaid overnight envelope the entire process 2 weeks Sorry to hear your having trouble I think the paperwork my morgage company sent helped speed it up.