I am receiving social security/disability. I owe 64,000 on my home, I have 63,00 in my 401(k), should I pay my house down with part of those funds?

with some of that order to keep it> I am currently getting help from Indiana hardest hit program. What should I do. Or does it make sense to file for bankruptcy to keep my home and car?. My medicine takes up quite a bit of my Social Security payment each month. I don't want to lose my home.

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Answered by Justin Clark, Mortgage Broker in Moreno Valley, CA
If you are 62 or older and have a decent amount of equity in your home you could do a reverse mortgage and eliminate your mortgage payment all together. Then you only need to worry about Taxes and insurance. I've done quite a few reverse mortgages for people in this same situation and it can really help out. Look for a trusted lender and give them a call and see if they can help you out. I hope this helps. | 01.12.16 @ 01:26
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$commenter.renderDisplayableName() — {comment} | 12.09.16 @ 03:57
Answered by Dave Bradley, Investment Manager (Financial Advisor) in North Charleston, SC
If you are unable to make your mortgage payments, Bankruptcy offers very little to alleviate this, because is expensive. It does give you time to gt more income. It does not offer a "get a hose for free program."

A reverse mortgage may pay off the mortgage if their is enough equity in the home.

More importantly is to live within your means. With $63K in a 401(k). Can that be moved into a self directed 401(k)? If yes, most any Investment Manager could double it to $126K in 7 years or less. You may also be able to borrow against the 401(k), if you are not eligible to receive the funds without penalties.-Doing this while growing the 401(k) may work. Keep in mind that most 401(k) administrators will put your funds in a money market account or other low yielding investment when you borrow against it.

Medicaid or Medicare part D may help lower your medication costs.

Send me a message do discuss in greater detail. No obligation.
Its not what you make, it's what you keep that determines your lifestyle. | 03.26.16 @ 22:03
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$commenter.renderDisplayableName() — {comment} | 12.09.16 @ 03:57
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Justin Clark
Justin Clark, Mortgage Broker in Moreno Valley, CA

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