All Forum Posts by: Ray Jender

Oh , and currently our credit scores are both 750+.  We really don't care if they take a hit.  No more credit for us.

We are currently renting the property out.  We still come up $350/month short  to cover the 2 mortgages.

As we are semi-retired and live in Florida, we really don't need to be out of pocket. Being underwater as much as we are, there really is no other solution.

We will be walking away from our property in Arizona that is under water by at least $50K. I don't think it will ever recover.

We bought in 2005 (of course at the peak of the RE boom) using an 80/20.  The 20 went all towards the purchase.

My question is:  The 2nd has been sold a couple times.  Does that affect the non-recourse walk away event at all?

Is the 2nd subject to the Az. non-recourse laws regardless of how many time it has been sold?

Thanks again Spenser. I will definately have to call my HR on Monday to find out my options.

Thanks for the response Spenser.

Yes, the 50K is in my current employer 401K plan. There is more in there, but I'm only looking for 50K. How can I take the loan for a primary house when I already have a primary house? Are you saying that if I take a loan for longer than I plan on working, the loan will convert to a distribution and taxes will then be due?

Thanks,

Ray

So I am 64 and getting ready to retire at 66 or 67. We are really interested in Florida. A condo or townhome.

But here's the issue. Our current home is underwater. Sure I made a mistake of buying at the peak. Paid $240K in 2005. It's now worth maybe $190K. If the market does not pick up considerably in the next 2-3 years, I am considering walking. I am in Arizona where the law says the mortgage company cannot come after me. I have an 80/20. Both me and my wife's current credit score is near 800. We have no bills except the 2 mortgages and normal household bills.

I don't have a lot of available cash to put down. I do have a 401K that despite the "never touch it" recommendations I have been reading, it's my money and I should have access to it. I would like to access $50K for a down payment. I know I would be liable for federal and state taxes. I'm good with that. I can pay the taxes now or later, what's the difference (besides a lower bracket later). Right now after deductions, I am in the 15% bracket.

So does anyone know how I can access my own money? As I understand it, you have to retire from the company or be in some hardship situation. I am in neither. Like I said, I'd like to purchase the Florida property now or within the next year while I am still working. When I retire, I will have roughly $50K of income/yr from a pension and SS.

Ideas?