Foreclosure and Loan Modification Blog

Not having enough money to pay your mortgage means making some tough choices. One choice that some homeowners find themselves pondering is whether or not they should take money from their retirement savings to make their mortgage payments.

Taking money from your retirement account is a big decision with serious consequences. Whether it's a good or bad idea for you depends on how much retirement savings you have and what's causing you to have trouble paying your mortgage.

When Spending Retirement on Mortgage Makes Sense

Taking a withdrawal from your retirement account to pay your mortgage could make sense if you have a ton of money in your retirement account and are experiencing a temporary hardship caused by a one-time expense. 

Retirement is supposed to be the best time of your life, the reward for your decades of hard work. A time to not worry about the things you've been worrying about your whole life, especially money. Unfortunately, many seniors find themselves worrying not just about money but also about avoiding the foreclosure of their largest asset, their home, in their golden years.

While dealing with the prospect of foreclosure is never easy, it can be especially difficult for retired people, the elderly, and those on a fixed income. People plan so that the expenses for the rest of their life can be paid from their Social Security benefits, retirement plan, and savings before they retire. But sometimes there are unexpected expenses that throw everything out of balance and leave a retiree unable to pay their mortgage.