Can I borrow from my 403B?

[concerned]

Hi Everyone:

Our case was discharged 10 days ago, but we're still waiting for it to close. We are trying to keep up on our mortgage just until we close. We probably don't have to, but we would like to be up-to-date just until closing to be safe. Anyway, I was wondering if I could borrow from my 403B in the meantime--just enough to get us by?

[BassBoy]

I wanted to do the same thing and I was told by my atty, that once we have our discharge, we can take a withdrawal or cash it out. Like you, I only wanted to withdrawal a small amount because we have found a place to rent (a really nice house) and we had to cough up 1st month and security deposit and we didn't want to start off on the wrong foot with just a small savings and we wanted to replenish the funds we just coughed up.

Oh, BTW, I nagged and nagged my atty about this and everytime I would ask, the answer was the same, "Once you are discharged, you can take it." Even on the day of my discharge, I spoke to my atty and asked again and the answer was still the same.

[concerned]

Thanks Bassboy

This is what I thought, but like you, I just wanted to be safe.

We are most likely going to have to foreclose on our homeI have heard from several posters that I should not be worried. We have been struggling to keep the house payments up-to-date and I want to keep them up-to-date until we are officially closed. The loan would just help out in the meantime.

Thanks for your help!

Concerned

[AAAArt]

I'm not sure that I understand why you are "struggling to keep the house payments up" unless you're trying to keep the house. It is going to take them 3-6 months minimum to foreclose and get you out of the house. It would have taken even longer before you were discharged.
I'm not trying to be mean, but why bother to borrow from your 403b (mortgage your future) to pay a mortgage that you aren't going to keep. You would be much better off (IMHO) if you saved that monthly payment for a deposit on a rental. Some people have gone for as long as a year living "rent-free. but the average is closer to 6 months. Since you have already filed Bk and not re-affirmed the hoouse, yours may go slightly quicker.
I don't know your situation, but in general it is no wiser, and often less so, to "borrow" from a retirement source than it is to borrow on a credit card to pay another credit card.
I realize that we all want to be honest and fair, but realize that lending institutions already calculated Bk's into their interest rate befor they loan out money.
Best wishes and hope everything goes well for you. Art

[concerned]

AAAArt:

We wanted to wait for our case to be closed, then contact our attorney and find out exactly what we need to do before we stop making payments. That way, we're not blindsided by anything. I am hoping the closing will happen before our next mortgage payment is due, which is April 1.


PS--We decided NOT to borrow fromy 403B. You're right--it would have been a bad move.

Thanks,

Concerned

[iupui1299]

403b

I have a 403b retirement plan. Will the trustee be able to take this from me?