What the....? Come on!

[6wolverines]

We are attempting to make a HARDSHIP withdrawal from my husband's 401(k) to catch up on 2 months of late mortgage payments. In order to do so we must have a BREECH letter from First Franklin. My husband requested this letter on 11/30 and was told it would go out on 12/1. On 12/5 I spoke with Maria at FF and was told it was sent on 12/1. On 12/6, still not letter, so I spoke with Isabell at FF and was told the letter was sent to us on 12/1. By 12/10 we still had not received the breech letter so I spoke with Kris at FF who said the letter was sent on 12/5, not 12/1.

Here we are, it's 12/12, and Paul at FF tells me, "There is probably a delay because of the holiday". What holiday? Thanksgiving? That was 3 weeks ago!! I called again a few minutes later and Jamie at FF just told me the letter has NOT been sent because there is "a problem with the system" so breech letters have not been sent. A PROBLEM WITH THE SYSTEM!!!???? If I don't have that letter we can not make the HARDSHIP withdrawal and we go into foreclosure by 12/31. I explained this to every freakin' person I've spoken with at FF. Why tell me they've done something when they have NOT! We are trying to make this payment and can't do it without that damn letter!!!! There is an expiration date of 12/26 on this 401(k) application for withdrawal too.......TIME IS OF THE ESSENCE!!!!

I've gotten the same questions from every person at FF......Are taxes and insurance current? Are you living in the home? Is the condition, fair, good or excellent? Why did you get behind on your payments? Blah...blah...blah!!!!

JUST SEND ME THAT FREAKIN' LETTER SO I CAN MAKE THE PAYMENTS AND NOT HAVE TO BE MADE TO FEEL LIKE A LOW-LIFE BECAUSE WE GOT SCREWED BLUE ON THIS PREDATORY LOAN AND LIVE IN A PART OF THE COUNTRY THAT IS HEMORRHAGING!!!!!!!!!!!!!!!

Please, someone.....outsource ME to India so I can work and pay MY bills!!!!

Char

[Brian K.]

Well you see your 401k is heavily invested in Franklin and in this market its portfolio is not what it once was. If Franklin gives you the default letter then it would have to admit to your 401k, that its portfolio of highly secured AAA paper that it is holding is absolutely worthless.

If that happened then your 401k would have no money to give. You see, the system is broken so they cant give you a default letter.

In all seriousness, most 401k plans allow you to withdraw for “any family emergency”. If you have not already done so, you should review the specific section of the 401k docs you have to see exactly what they need from you to release funds. On my 401K I just had to fill out the withdraw form and check off my reason. I cant see your 401k requireing a note from a doctor or cancer treatment, and not to avoid your loss of the family home.

[MlcMBjnn]

Maybe I'm missing something here - aren't you entitled to simply take a loan from your 401k? There are no penalties, no interest, and you can pay back over 5 or 10 years. I did it to pay the closing costs on my first house and didn't have to explain anything to anybody - just said I wanted it.

[Moe]

Some 401k's will allow for these types of loans if they are for the purchase of a home.