I’m Doing A Short Sale, Can My Lender Take My Retirement?

I’m Doing A Short Sale, Can My Lender Take My Retirement?

One of the top questions we get asked is what happens to the retirement accounts when doing a short sale? Here is the info:

401ks, 403bs and Pensions

Your lender is not permitted to “raid” or liquidate employer-sponsored 401k, 403b or pension plans thanks to ERISA, the Employee Retirement Income Security Act. In fact, other than the IRS or former spouses, these accounts are protected from all creditors. It is never considered advisable to liquidate or borrow against your retirement savings to save your home. If you recently rolled over money from an employer-sponsored plan into an IRA, that money is protected as well. Be sure to save your account statements that show the rollover.

For more information about short sales please ask for Kristine Halverson of Prudential at 310-737-8173


Speak Your Mind