Posted on: 06th Feb, 2010 12:55 pm
:( My wife an I have 5 children. One in college, 2 in high school and 2 in jr. high. I have lost my full time job. My wife is employed. 4 years ago we borrowed against my wifes 401K for a down payment on our home. Because of my job situation money has become very tight and we have defaulted on the 401K Loan. What are our obligations as far as the 401K Loan?
The collateral is your 401k, so the Lender will take the loan portion of money from your 401k. Give them a call and explain your situation.