401K loan
Posted: Fri Jul 08, 2016 4:59 am
Hello, I am a stay at home mom of 5 children, ages 6 months to 16 years old. My husband is employed at a Wal-Mart in Curlew, Washington. He works 48 hours a week. We bought our first home last year, because our home is on a river, we have a very high flood insurance and very high property taxes. Our total monthly payment for our home is $1,780. This includes our mortgage payment, property taxes, home owners insurance and flood insurance. The payment is higher as we had bad credit scores...at least the bank told us that.
We brought home a new baby December of this year, although he is such a blessing in our lives, after he was born things changed for my family. I had medical complications, which caused my husband to have to take off almost a month of work and left us with very large medical bills (we have insurance through my husband's work, but we have a $3,500 deducible).
Because my husband had to take off so much work this year, we ended up getting very behind in all our bills. We went from a high credit score and all our bills being current, to our credit score dropping lower than it has ever been and we became months behind on all our bills. We almost had our power shut off twice, almost had our car repossessed and we are currently one month away from foreclosure on our home because we just can't seem to get back on track with those payments. We ended up getting back on track with a few bills, but unfortunately many of our bills went to collections. We are currently two months behind on our car payment and three months behind on our home mortgage.
We have been able to continue to make one payment every month, but can't seem to make two or three payments within one month to get back on track. My husband has the income to make the payments, but we are facing foreclosure and we are lost in how to keep our home. This January we also took out a loan on my husband's 401K and (without talking with me) my husband decided to sign a contact stating that we would pay off the loan in 12 months. I am the one that handles all our finances and he didn't know that we couldn't afford to have this loan paid off in 12 months. Our plan was five years, but now my husband is having over $400 taken out of each of his paychecks that goes to the loan. Fortunately this will be paid off in February, but right now we are short $900 a month going to this loan repayment. This is cutting our income low, to where we are barely getting by. We spoke to the 401 K company and they can't do anything to extend the loan to lower the payments of the loan.
We also went through Loss Mitigation though our bank we have our home Loan through, but we were unable to get any help from them because our mortgage is less than 1/3 of our monthly gross income. But this does not mean to we can make the payments right now. We have also applied for food stamps, which we get $59 a month of. I attend two food banks a week to help with our food supply quite a bit. We have contacted charities, churches, family and friends and we got a little bit of help with a mortgage payment a couple months ago, but right now we are worst off and we are really scared. We fear badly that we are going to lose our home. We have 7 children and we are scared that we soon we won't have a roof over our heads or a vehicle to transport our family in. We own one car, although it seats just five.... We have a family of six and we have an SUV we still owe on. Those payments are $330 a month and we are currently two months behind on those payments.
We have tried everything we can to get back on our feet, but we really need help and I'm not sure where to turn to from here. I'm not even sure if this is the right e-mail to be sending this to.
We get calls from our mortgage company almost every day to remind us we are really behind, and we need to come up with over $5,500 to get out of foreclosure.... I am so scared for my family and I don't know what to do. We know we can get back on our feet and keep our home for our children, but we need help getting caught up... Also by February we will have $900 more a month because our 401 K loan will then be paid off, but I'm nervous that will be too late. We need to get caught up now.
My husband and I are young parents and we have always done everything on our own. We have always helped anyone and everyone when they are in need... We have never reached out for help, because we have always been able to get through everything on our own.... but I'm so sad to say that we need help now. We flat out need help for this 401K loan and other aid, so I am reaching out for my family.
I'm not too proud to ask for help, but I feel as a mother I should be able to support my children and keep them healthy and safe, I feel as though I am failing. We can barely afford food each month to keep our children fed healthy. Although $59 a month helps with food stamps, it doesn't cut it.
We can't afford for me to work since we have 5 children, 2 of them not being in school yet. I had a good job at a local company working as the Law Clerk, but after a year and a half we realized I was strictly working to pay a babysitter and buy gas, as we live in a very secluded area and the nearest 'city' is 40 minutes away. I had to leave my dream job to pursue my true dream job of being a stay at home mom. My husband and I both have a college degree; mine in Criminal Law and my husbands in business and mechanics. Like I stated before, my husband does have a good job which pays good, has medical, vision and dental benefits, a 401K plan and paid sick and vacation days. We are so blessed and thankful that he has a good job to support our children and myself, but even with his high income we absolutely just can't get on our feet after what happened this spring.
Please, if there is any kind of assistance that you can provide for our family... please help us. We need help.
I appreciate the e-mail being read and thought of. Curlew, WA 99118. I will be waiting on a response in some way. Again, thank you so much for your time, and I pray that there is something that can be done to help my husband, children and myself.
We brought home a new baby December of this year, although he is such a blessing in our lives, after he was born things changed for my family. I had medical complications, which caused my husband to have to take off almost a month of work and left us with very large medical bills (we have insurance through my husband's work, but we have a $3,500 deducible).
Because my husband had to take off so much work this year, we ended up getting very behind in all our bills. We went from a high credit score and all our bills being current, to our credit score dropping lower than it has ever been and we became months behind on all our bills. We almost had our power shut off twice, almost had our car repossessed and we are currently one month away from foreclosure on our home because we just can't seem to get back on track with those payments. We ended up getting back on track with a few bills, but unfortunately many of our bills went to collections. We are currently two months behind on our car payment and three months behind on our home mortgage.
We have been able to continue to make one payment every month, but can't seem to make two or three payments within one month to get back on track. My husband has the income to make the payments, but we are facing foreclosure and we are lost in how to keep our home. This January we also took out a loan on my husband's 401K and (without talking with me) my husband decided to sign a contact stating that we would pay off the loan in 12 months. I am the one that handles all our finances and he didn't know that we couldn't afford to have this loan paid off in 12 months. Our plan was five years, but now my husband is having over $400 taken out of each of his paychecks that goes to the loan. Fortunately this will be paid off in February, but right now we are short $900 a month going to this loan repayment. This is cutting our income low, to where we are barely getting by. We spoke to the 401 K company and they can't do anything to extend the loan to lower the payments of the loan.
We also went through Loss Mitigation though our bank we have our home Loan through, but we were unable to get any help from them because our mortgage is less than 1/3 of our monthly gross income. But this does not mean to we can make the payments right now. We have also applied for food stamps, which we get $59 a month of. I attend two food banks a week to help with our food supply quite a bit. We have contacted charities, churches, family and friends and we got a little bit of help with a mortgage payment a couple months ago, but right now we are worst off and we are really scared. We fear badly that we are going to lose our home. We have 7 children and we are scared that we soon we won't have a roof over our heads or a vehicle to transport our family in. We own one car, although it seats just five.... We have a family of six and we have an SUV we still owe on. Those payments are $330 a month and we are currently two months behind on those payments.
We have tried everything we can to get back on our feet, but we really need help and I'm not sure where to turn to from here. I'm not even sure if this is the right e-mail to be sending this to.
We get calls from our mortgage company almost every day to remind us we are really behind, and we need to come up with over $5,500 to get out of foreclosure.... I am so scared for my family and I don't know what to do. We know we can get back on our feet and keep our home for our children, but we need help getting caught up... Also by February we will have $900 more a month because our 401 K loan will then be paid off, but I'm nervous that will be too late. We need to get caught up now.
My husband and I are young parents and we have always done everything on our own. We have always helped anyone and everyone when they are in need... We have never reached out for help, because we have always been able to get through everything on our own.... but I'm so sad to say that we need help now. We flat out need help for this 401K loan and other aid, so I am reaching out for my family.
I'm not too proud to ask for help, but I feel as a mother I should be able to support my children and keep them healthy and safe, I feel as though I am failing. We can barely afford food each month to keep our children fed healthy. Although $59 a month helps with food stamps, it doesn't cut it.
We can't afford for me to work since we have 5 children, 2 of them not being in school yet. I had a good job at a local company working as the Law Clerk, but after a year and a half we realized I was strictly working to pay a babysitter and buy gas, as we live in a very secluded area and the nearest 'city' is 40 minutes away. I had to leave my dream job to pursue my true dream job of being a stay at home mom. My husband and I both have a college degree; mine in Criminal Law and my husbands in business and mechanics. Like I stated before, my husband does have a good job which pays good, has medical, vision and dental benefits, a 401K plan and paid sick and vacation days. We are so blessed and thankful that he has a good job to support our children and myself, but even with his high income we absolutely just can't get on our feet after what happened this spring.
Please, if there is any kind of assistance that you can provide for our family... please help us. We need help.
I appreciate the e-mail being read and thought of. Curlew, WA 99118. I will be waiting on a response in some way. Again, thank you so much for your time, and I pray that there is something that can be done to help my husband, children and myself.