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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: jmparret who wrote (87833)	10/21/2007 11:43:06 AM
From: Giordano Bruno	Respond to of 110194

Oddly, you must be 60 days past due to qualify. Considering they would choose accessing their 401ks over foreclosure anyway they're simply saving 10% and, of course, their banks.

To: jmparret who wrote (87833)	10/21/2007 11:56:49 AM
From: Metacomet	Read Replies (1) \| Respond to of 110194

I don't think they are contemplating amortizing the advance over 3 years. The loan would serve as a bridge to maintain the asset, hopefully until "normal" market conditions return allowing a re-financing and payoff of the advance. The downside is that the market may not return in 3 years and the loss of the earnings on the 401K merely delays the problem until one retires and, ostensibly, could have used the cash. Another pay me now or pay me later scheme. Anything to avoid dealing with reality.