I am looking for answers on 401k hardship. I currently have 40k in my plan.?

Under the rules, it states the following :
Payments necessary to prevent eviction of you from your home, or foreclosure on the mortgage of your principal residence.
I provided the investment company a summons of foreclosure and a copy of utility bill proving I still live here. I went on full disability back in August of 2006 under company disability plan. I am now considered full time disability under disability plan but not terminated. I want to use money to pay back payments, legal fees, late fees, and the remainder to help me keep up the mortgage for a year to obtain a better mortgage next year or buy down principal now and getter better payments. With the late payments I am getting penalized for higher mortgage rates. Investment company now says I can't take money out because it is in summons of foreclosure. the laws seems very vague. Help!!!! Investment company cannot dictate can they? I should provide documentation to IRS next year correct?

I already maxed out on loan three years ago due to purchase of new home.

The problem with the 401K 's is that the investment company ( your employer) does dictate when you can or cannot use your 401k)
that is a HUGE downside and I will NEVER again participate in that type of pension savings

have you applied for a loan through your Human Resource Dept against your 401k?

I

Well here's the problem, you can't take the money for legal fees, late fees, as a reminder, or to attempt to get a better rate. You can only take the money necessary to prevent foreclosure. If you're in no danger of foreclosing because you're now making full payments and are simply behind then you have to make other arrangements with the mortgage company to get caught up.

If you ARE in danger of foreclosure then redefine your request eliminating all that other jazz. Ask your mortgage company to detail exactly how much they require to prevent foreclosure. Ask for it in writing and then use that letter in your request. Make sure they detail when the house will foreclose. Remember, it has to be immediate hardship...so if they say they'll foreclose in a year...you won't get the hardship.