Posted on 07/04/2012 5:40:54 AM PDT by Free America52
I believe there are ‘hardship’ provisions which, if you qualify, the penalty is waived. I’d check into this. Do it before that Obastard gets re-elected.
I like the idea. I weighed all the options 15 years ago and decided having a place to live that is paid for is the most important thing I could do. Almost all “smart” folks advised me to use other peoples money and mortage as much as I could.
Bought land, bought block and cement and sand and rebar and today I have a nice place to live with land for a garden and more. It is not finished and I rough it a little bit.
But I sleep like a baby : ) and if a employer so much as looks at me crosseyed, I tell them to take their job and shove it and I walk.
What a great feeling!! I am blessed to be alive and not struggling to pay rent. I dont have to put up with any roommates and I do whatever I wish to my house like turning a room into a indoor greenhouse or a fish farm
Good luck whatever you do
You’re in IT, right ?
IMHO, I’d start looking with...
www.indeed.com
www.dice.com (if you’re looking for contract)
with IT you can usually hustle up something in a pinch.
If not, just expand the niche that you’re in and open up to other related jobs/contracts.
Things certainly are a lot slower than they were 15 years ago !
IMHO, if there ever was a thing you really wanted to do, it may be the time to think about that - IF you really have it planned out. Trying to come up with plans during a pinch time results in not-so-realistic plans.
IMHO.
Good story with LOTS of valuable info!
The only way paying off the mortgage makes sense is if the interest rate is still several points ABOVE current rates, AND doing so doesn't deplete your savings. Otherwise, CASH IS KING in this economy and they'll need every penny they have for living expenses.
Consider the fact that homes are still going DOWN in value, and who wants to throw good money after bad by paying off a depreciating asset?
First thing: cut all UNNECESSARY expenses. Bye bye cable TV, etc..
Second thing, if there's still a mortgage on the home apply for HAMP, that's the home mortgage modification program. Assuming there's savings that can be used to pay for the home the next 12 months, they should qualify.
Third, if the mortgage is held by a local community based bank (and not some behemoth like BoA, Citigroup, Wells Fargo, Chase...) they can always walk into the local branch and speak with either the branch manager or a loan specialist who can talk about options to stay in the home by reducing payments. Believe it or not, Community based banks do NOT want to foreclose and they'll work with you to stay in the home. All bets are off if it's BoA, Chase, etc..
Fourth, do WHATEVER you have to do to NOT cash out your 401K. The tax implications are HUGE, the Government gets the best part of that deal. Do you really want to give Obama more of your money? HELL NO!
Finally, if they do end up having to sell the home, list it first and see what you can get out of it rather than just handing over the keys to the bank or going straight to short-sale. Depending on the market they live in, some markets are actually running out of saleable, move-in condition homes and seeing sales happen quickly. Where I live, several homes have sold within a week (one in a day!) because the inventory of quality homes is really very short. Take the cash from the sale (if you have to sell) and RENT somewhere until home prices stabilize and THEN buy something you can more easily afford.
That's the best advice.
what is your background? resume?
can you move where there is more jobs?
Some of my most successful hires have been 50 years-old plus so I am certainly not one who considers 50+ people over the hill. They usually end up being my most dependable and customer-friendly employees.
I know you are from the South but Freepmail if interested in relocating and good luck regardless.
It is usually not a good idea to cash out an IRA/401k because of the taxes and 10% penalty. However, it really depends on individual circumstances. If you have 6 months of income and your employment prospects are dim consider withdrawing an absolute minimum to minimize current year taxes. Postpone as much of your withdrawals to next year IF you expect little actual income then. This will help minimize taxes.
Another tactic would be to specify zero tax and penalty withholding in the current year as taxes aren’t due until next April 15. Withdraw the amount you need to pay taxes to next year.
You should consult a tax adviser on how to do this so you don’t screw it up which might be easy to do.
By many estimations consider that housing values probably have not bottomed out. This is highly variable based on location and state.
Sad to hear.....I’m single and unemployed (15 months) and have my condo up for sale so I don’t have to pull my 401k....Very depressing.....
You’ve omitted a lot of very pertinent data like age, future employment prospects, marital status and so on. Try more than one retail financial planning companies that can map out a plan that considers all the factors. They will try to sell you a bunch of stuff like insurance and annuities that tie you in, so be careful since what you really want is the plan.
How old are you? What are your skills?
1 - At 56 you have 3 or so years to go before you can get past the 10% standard penalty on qualified plan / 401K / IRA distributions.
2 - You just suffered a major blow, like a death.
3 - Do NOT make big decisions right now.
4 - Take a job, even at $10 an hour. Get work, call center, security guard, anything.
5 - Do a very careful assessment of your expenses and income sources. If you can, cut. If you cannot, ask yourself why?
6 - Analyze your balance sheet. What do you own, what do you owe. Hire a CPA with a CFP to do a two or three hour analysis and advise you. Worth every penny.
7 - Be open with friends and family that you are looking for work. Join Facebook and LinkedIn. Ask for help from your Church.
8 - At age 62, if the program still exists consider using a FHA Reverse Mortgage to replace your current structure.
you have months of unemployment to collect, then go on a tight budget.your unemployment comes to almost 1000 dollars a month.
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