Monday, September 21, 2009, AM | Leave Comment
Have you fallen behind on your mortgage payments? If you have, don’t despair. Don’t think about defaulting on your mortgage loan. By following these steps, you can have more control over your home-ownership future than you think.
So then, how to find the money you need
You don’t necessarily have to have a checking account on hand to pay for your monthly mortgage. There are other sources as well that you may not have thought about:
- Stocks and bonds. In your portfolio, if you have stocks and bonds, they can be converted to cash in a couple of days. If you are at the brink of defaulting, then your stocks and bonds can be easily liquidated.
- 401k plan. If you have retirement account, may that be 401(k) or IRA (Regular or Roth), you can look into making a hardship withdrawal or converting some of it to cash. Be sure to talk with your tax and/or your financial adviser for any penalties that may be incurred.
- Insurance policies. Much like a 401k plan or another retirement account, insurance policies like Whole-Life have a cash value that you may be able to borrow against or cash in.
Before tapping into any of these, make sure you understand any penalties or tax implications.
If you don’t have investments or insurance policies, there are still some simple ways to get the money you need to repay your mortgage:
- Ask your utility company to put you on a budget plan so you pay as little as possible.. Make only the minimum required payments to keep essential utility services connected.
- Cut spending. Cut down or in some cases, try to eliminate as many lower-priority expenses as possible. Stop or at least minimize going out to restaurant, stop magazine subscriptions, premium television channels, and other entertainment expenses.
In a Nutshell
Remember, your home is your greatest investment and your most powerful wealth-building tool. If your goal is to be financially secure, protecting your home asset should be your highest priority.
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