Reply to cash out roth IRA, 41K or sell house first ?

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Reply to "cash out roth IRA, 41K or sell house first ?"

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[quote=Anonymous]Figure out anything besides cashing out the 401K or selling the house at a discount.  Both of those options will haunt you financially for the rest of your lives.

The Roth is OK, you only pay taxes on the interest earned so you can take out whatever you put in as principal.  But even that is something you should only do in a pinch.  Take a job at Best Buy, or cleaning houses or cutting lawns or childcare or walking dogs.  Be creative.

If you really get to the point where you can't make the mortgage payments, then stay in the house and don't make the payments.  You will be evicted eventually in several months but you can use the $3K that you will save per month for a nest egg to get an apartment.  It would be better to do that than do a fire sale on the house (you may have to pay more to the mortgage company than you get from the sale, or if it's a short sale, you may have to pay income tax).  And definitely do not touch the 401K!  You are in your prime compounding years.  Just leave it.  It's not there.  It's for you later when you are old and can't work, or disabled, or need it to survive when you are retired.   [/quote]

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