Legal Question in Credit and Debt Law in Virginia

Hardship Withdrawl Refusal

My wife and I recently lost our home to foreclosure. My wife had money in a 401K that could have saved our home, but when she applied for a hardship withdrawl, the plan administrator began to insist on requirements that were not stipulated in the plan. We easily proved our inability to obtain a loan or other funds needed, but my wife was told that if she didn't satisfy the

plan's advisory committee, the request would be denied. While this was being hashed out, the deadline the mortgage company had set expired...thus our home was auctioned off. Does my wife have legal recourse in this case? (Some of the requirements were nearly impossible to meet in such a short time frame and we were not made aware of these until after the application was made)


Asked on 8/15/06, 12:00 pm

1 Answer from Attorneys
Michael Hendrickson Law Office Michael E. Hendrickson

Re: Hardship Withdrawl Refusal

Hard to say; you might want to seek the counsel of an attorney who specializes in ERISA and related law. However, even if your home was foreclosed upon and subsequently "auctioned off",

there should still be an applicable period of redemption during which you are allowed to repurchase it.

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Answered on 8/15/06, 2:12 pm


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