Rai401k Posted March 31, 2015 Posted March 31, 2015 Plan allows for hardship distribution based on safe harbor standards. A participant wants to take one to prevent foreclosure (as stated under the sh reasons). What constitutes as preventing a foreclosure? Actually receiving a foreclosure notice and then taking a hardship. OR Can he take a hardship because he is behind on his mortgage by two months. He is preventing foreclosure by taking the hardship to get caught up.
QDROphile Posted March 31, 2015 Posted March 31, 2015 Foreclosure must raise its ugly head in a more promimate manner. Late mortgage payments are not enough. Even a reminder that failure to make or catch up payments can result in a foreclosure is not enough in my book, but I imagine that others may differ. I think the f word has to be used with some seriousness rather than just formality.
austin3515 Posted April 3, 2015 Posted April 3, 2015 My opiion is if the bank puts the word foreclosure in the letter it's met my standard. They didnt give a lot of guidance here so tie goes to the runner... Austin Powers, CPA, QPA, ERPA
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now