attorney question (and 401K question too)

[aimster]

I know that the Marshall attorney advertised on this site can help in any state, but does anyone have any recommendations for a good attorney in Michigan? I think we have fought this battle on our own long enough. We need some help. We were approved a loan mod/freezed rate from HSBC for one year (until March, 2009), but I don't think I have the energy to fight this battle for one more year, in hopes of them coming up with new programs between now and then and extending the one-year offer. I wonder if we shouldn't spend the next year TRYING to sell our home in the next year instead and hoping for a short sale maybe.

Yes, just to recap, I've done the QWR, received documents and even tried rescinding my loan (with no attorney). I've even asked HSBC to take less on our principal, which they ARE NOT doing.

On another note, I had submitted the Hardship Withdrawal Request to my 401K Administrator to liquidate my 401K and pay down the principal so that we could refinance. My plan administrator said no, this is not considered 'foreclosure prevention' it's a 'refinance'. Yes, that is true, but if we don't refinance, we can/will face foreclosure in this mortgage crisis. I think given the state of our economy, that this falls within the IRS guidelines (in a gray area, but still). I want to appeal it, but my plan administrator said they even checked with the employer to be sure they could not approve it. The Gov in our state oversees that department (I work for the state), so I am agressively trying to get into to talk to her or someone in her office in hopes of her overriding the decision and allowing me to pull from my contributions. I also have our local Congressman finding out from the IRS if we can do it. I saw an article in the papers over the weekend on other folks drawing from their 401Ks to pay down their mortgage and refinance out of this. Has anyone been successful in that from this site? If so, I'd love to hear from you too. Right now I've shifted the battle from HSBC to my 401K folks in hopes of refinancing and closing this chapter of my life. I'm not asking for anyone to give me any money except what is mine, you'd think it would easier than this!

We can not allow any referral of for profit or fee attorney's or other services on the forum. What we do suggest is that you contact NACA if Marshall is not an option.

NACA is a non-profit organization that will refer to an attorney in your area to assist you in your endeavors.

The one year hiatus that you got from HSBC is better than a lot, most of them are 6 months. I can only imagine your frustration. I am sorry about the 401(K) issues, after having done some very hard research on the subject due to other's on the forum, your plan manager is correct. You have to be in the active process of foreclosure to be considered hardship withdrawal. The possibility and chance of impeding foreclosure does not satisfy the hardship terms that are set forth by the IRS and 401(K) Plans.

It would be my suggestion that if this is a loan that was a result of a refinance that you do have your documents reviewed and have an attorney address the long term issues with this loan.

No HFSC is not reducing principle, none of them are without very egregious appraisal fraud and other violations of Reg Z, TIL and RESPA. That is often why we really stress Qualified Document Review and the Attorney route.

[aimster]

Thank you for such a quick reply.

I just assume Marshall is pretty busy these days, with the amount of folks in this forum. And, of course, we are in Michigan and Marshall's in CA. It would be nice to meet with someone face to face.

What is NACA? I assume they are credible?

NACA is a non-profit consumer referral service and advocacy program...very reputable. You also can call Marshall and determine how busy he is....granted in CA, but all in all with e-mail, faxes and such....we are never that far away these days.