Posted on: 25th Nov, 2008 01:40 pm
I am getting very close to retirement, I had planned to make a few dollars on my home to add to my retirement fund. Needless to say the market has gone i the opposite direction, and I find myself upside down by about 35%.
My questio is"My wife and I have discussed buying a less expensive property, and letting our current home go in to foreclosure since we feel ther is no way that the market will rebound in the next several years.....maybe not even before we become completely disabled or die.
If we decide to take this route, what are the issues we face? Can our retirement funds be tapped?
My questio is"My wife and I have discussed buying a less expensive property, and letting our current home go in to foreclosure since we feel ther is no way that the market will rebound in the next several years.....maybe not even before we become completely disabled or die.
If we decide to take this route, what are the issues we face? Can our retirement funds be tapped?
Hi Emipaul!
Welcome to forums!
Foreclosure will not be the right option for you. It will badly affect your credit score and will lower it by around 250 points. This may create problem while you start looking for another property. Moreover the lender will have the right to place liens on your other properties. I don't think the lender will be able to garnish your retirement accounts but he may garnish other bank accounts.
You can try for refinancing the property at a lower rate which will help you in reducing the monthly payments. But you should remember while refinancing, you will have to go through credit check and you will also be charged the closing costs.
You can also try to rent out the property and pay the mortgage debts from that money. And you can buy a new house which is a less expensive one.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
Foreclosure will not be the right option for you. It will badly affect your credit score and will lower it by around 250 points. This may create problem while you start looking for another property. Moreover the lender will have the right to place liens on your other properties. I don't think the lender will be able to garnish your retirement accounts but he may garnish other bank accounts.
You can try for refinancing the property at a lower rate which will help you in reducing the monthly payments. But you should remember while refinancing, you will have to go through credit check and you will also be charged the closing costs.
You can also try to rent out the property and pay the mortgage debts from that money. And you can buy a new house which is a less expensive one.
Feel free to ask if you have further queries.
Sussane