Foreclosure and Your Retirement Account
Many people have questions about how foreclosure will affect their finances. Sometimes the money is available to make your mortgage payments, but it is tied up in IRAs, mutual funds, trusts, and other retirement savings accounts. Should you tap these funds to make your mortgage payments? The answer depends on your circumstances, but most financial advisers agree that drawing on retirement accounts should be a last resort.
For more about this and other foreclosure questions, contact the West Palm Beach foreclosure defense attorneys of Eric N. Klein & Associates, P.A. We help clients in their time of need, and we may be able to help you as well. Call us at 561-353-2800 for more information.
Using Retirement Account Funds to Avoid Foreclosure
When you miss a mortgage payment, it may be tempting to take funds out of your IRA or investment portfolio to make up the balance. Unfortunately, doing so can cause even more serious problems. For example, withdrawing from a retirement account can:
- Incur a tax penalty
- Change your tax bracket
- Damage your long-term financial health
There may be ways to avoid foreclosure without taking this drastic step. After careful consideration, you may decide that it is better to undergo foreclosure than to tap your retirement funds. You should consider all facets of the issue before making a final decision.
Contact Us
At Eric N. Klein & Associates, P.A., we want our clients to emerge from the foreclosure process stronger than before. This is why we leave no stone unturned when considering how to help clients through this difficult time. To speak with our West Palm Beach foreclosure defense lawyers, call us today at 561-353-2800.
