2. TAPPING INTO YOUR RETIREMENT FUND
If you have a retirement fund with some money, you can choose to make an early withdrawal and use the money to pay what you owe your lender. If you have a Roth IRA, you can also withdraw money from it and not have to pay extra taxes or any penalties. However, if you have a traditional IRA or 401k, you’ll be charged taxes and penalties for making an early withdrawal. Tapping into your retirement fund may set you behind on your retirement savings, but this is better than losing your house. You can work on catching up on your savings once you are back on track with your mortgage.
3. REINSTATEMENT (CATCH UP YOUR PAYMENTS)
You can halt a foreclosure — and get your mortgage back on track — if you can make a single payment to pay off your delinquent amount. As soon as you are all paid up to the point where you should be, you can resume your old mortgage payment schedule and get on with your life. Keep in mind that this amount will not only be the sum of delinquent payments — it must include any fees and other expenses you have incurred because you were late. To make sure you pay everything necessary, you must contact whoever is servicing your mortgage account to receive a quote for the amount needed to cure your default. The quote will be valid through a specific payoff date. Once you have that deadline, don’t wait until the last minute to pay. You’ll be expected to pay not only the back payments you owe but also any expenses the lender incurs through the process of getting you back on track. For example, the quote might include: • all back payments you owe
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