As the unemployment rate rises, more mortgage borrowers must choose between default and making the payment out of savings. That can be an agonizing decision. "I was laid off recently but am reasonably hopeful of finding another position soon ... We have stayed current by drawing down our IRAs, but there is only about $4,000 left, enough to cover us for one more month. Our family is counseling us to keep the $4,000 left in our IRAs and not make the next monthly mortgage payments. Do you agree?" Not making the payment will hurt your credit, but if the choice is between missing the payment this month and missing it next month, I would miss it this month and keep the cash. I would use the $4,000 to make the payment only if you manage to get a job before 30 days after the payment due date. In that event, you have a reasonable hope of being able to work your way out of the jam you are in, so using your remaining money to save your credit makes sense. This question is ...
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