What should I do about mortgage situation?

0.10 Dollars($)

I lost my job and found one in another city. I moved from my house to the new city and rented an apartment with a year lease. Now I'm trying to sell my old house at no profit but in this market in MD it won't sell. It won't even rent to cover the mortgage. I want to get rid of the house if possible (which is in great condition). I simply can't afford rent and a mortgage. I've taken a loan from my retirement plan to pay the mortgage but that will only last for another 3 months and then I won't be able to pay. Should I call my lender to discuss options?

jameshogg

Hi guest,

Welcome to forums.

Oh yes, you should talk to the lender if you aren't able to pay down the mortgage. In fact, you could have done it earlier as because I feel it's getting pretty tough for you to continue paying with the loan from your retirement plan. You'll have to pay off this loan too and if you default on the loan taken from your retirement plan, then you'll have to pay 10% penalty and then there are the taxes too.

well, I don't wanna scare you but it's the fact that I've spoken of. There are a lot of options that can help you avoid foreclosure and depending upon your financial situation and the policies they follow, the lender may suggest the option that he thinks is suitable for you.

Thanks

Guest 0.10 Dollars($)

Should I not use a loan from my retirement savings to pay my mortgage?

helping_user

Hi guest,

Welcome back.

If you ask me, frankly speaking, I don't think it's a good option to use your retirement savings in paying down the mortgage. But if you're willing to pay those taxes and penalty (which I think may create more problems for you), you may continue with the payments. However, the best option as james suggested above is to talk to your lender.

Thanks.

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