While cities and towns across America begin to open up and some return to the workforce, many wonder how long it will take to get the economy back to where it was before the Coronavirus hit. For most, even though they are returning back to work, they will still be experiencing a significant pay-cut making their cash flow and ability to afford their mortgage challenging.
Per the CARES Act, your lender or loan servicer may not foreclose on you for sixty days after March 18, 2020 and with most top economists under agreement that the economical landscape will begin to recover in the second half of 2020, what can those struggling now do until then? Some literally cant afford to wait that long.
The question on how someone can pay back their mortgage payments after forbearance is over is another cause for concern with options being:
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in one lump sum at the end of the forbearance period
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added onto your existing monthly payments over a set number of months
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added to the end of your loan as additional payments or as a lump sum
Only government backed lenders have offered to have the payments added to end of the loan, so those working with lending institutions not backed by the U.S. Government could still face serious hardship and foreclosure once their forbearance period is over. Not to mention the damage done to their credit if they are not able to make the payments agreed upon with their lender.
There is an alternative to what the government and mortgage companies are offering which could ultimately be an investment advantage. Temporary utilization of your IRA or 401k Rollover today, can save the investment you have in your home, lighten your monthly cash flow burden, and still preserve monies for the future.
We’ve quickly answered six of the top questions we get concerning using IRA funds to support mortgage payments here:
Q: I’m not old enough to qualify to start withdrawing my retirement money yet, so how can it help me now?
A: There are two different ways in which your retirement monies could help you through this transition time. Both options are available to you at any age.
Q: What is the difference between the two strategies?
The IRA Real Estate to Occupy Investing Strategy, wherein the real estate is purchased OUTSIDE™ of the IRA, is similar to estate planning. Your current financial situation is evaluated, your long term goals are assessed and then with these elements in mind, your retirement funds are structured for immediate support of your existing mortgage or for a new real estate purchase or build, while at the same time, ensuing security and longevity of the principal balance of your retirement fund.
The Mortgage Relief Strategy offers a short term bridge solution intended to assist your cash flow needs. This strategy can assist individuals with low value retirement funds and would be suggested for consideration if the IRA Real Estate to Occupy Investing Strategy, or OUTSIDE™ Method, is incompatible with your circumstances.
Q: Will I incur penalties for accessing my retirement monies prior to retirement age?
A: Not when your retirement funds are structured by the IRA Real Estate to Occupy Investing, or the OUTSIDE™ Method.
The Mortgage Relief Strategy could incur a penalty, however, this strategy is calculated to take effect on an as needed basis, substantially minimizing the penalty to a level where the benefits outweigh the cost.
Q: How do I find out either of these programs can help me?
A: Fill out the “10 Question Form” on our website. The information you provide us in this form will help us determine if you could benefit from our services. We will then invite you to a complementary telephone consultation where our consultant will discuss with you how a plan would be structured to benefit your particular case. You can fill out the form here.
Q: Once I speak with a consultant at your office, am I committed to signing up for your services?
A: No. Our business code of ethics ensures you will receive no sales pressure to move forward with our program.
Q: If I decide to move forward with the IRA Real Estate to Occupy Investing Strategy, aka the OUTSIDE™ Method, or the Mortgage Relief Strategy what is my cost for you services?
A: Most of our clients incur no cost at all. It will depend on which custodian you decide to move your retirement monies to for the foundation of your plan.
ONE LAST THING.
Tired of the hype of the stock market, only to get burned? Direct your IRA funds into real estate that you can buy or build.
With the extreme volatility the market has been experiencing the past couple of months, not a single client of ours has incurred a loss of value to their SHIRA™.
In fact, according to a report from Zillow, real estate increased in value an average 5.46% in 2019 nationwide, along with the asset protection of their SHIRA™, possible rental income, tax benefits, and the intrinsic value of occupancy of the property, our clients enjoy confidence, peace of mind and growth with their SAFE HARBOR®-Directed IRA™ (SHIRA™) real estate investment and its bottom line.
We help people multiply their IRA funds by directing them to purchase or build real estate that they can personally use or create an additional income from, so that they can have more flexibility and freedom in their retirement, as well as create certainty and security for their families and leave a larger and more impactful legacy.