Do you know how to stop foreclosure in Texas without bankruptcy? If you're trying to preserve your credit and save your home, the answer may lie in your 401k account.
A 401k loan can stop foreclosure in Texas.
You can raise cash by tapping your 401k or your IRA, but if you do so, you will pay heavy penalties on top of the regular income tax.
A 401k loan allows you to access the money without the tax penalty.
If you are currently employed at the business which generated your 401k, contact the human resources division and ask if they process 401k loans.
If you've already left that employer, the task is trickier. You cannot obtain a loan from a previous employer's 401k.
However, if you are self employed, you can set up a solo 401k with a loan option. You can roll over all funds from IRAs and previous 401k's. At that point, you can borrow up to $50,000 or 50% of your solo 401k amount, which ever is less.
Because you are essentially borrowing from yourself, there is no credit check. The interest is set at the prime rate and is not adjusted during the loan term. Both interest and principal payments are put back into the 401k.
In order to take advantage of the Solo 401k option, you can only employ your spouse. You cannot have outside employees. If you are certain you can repay the amount, the 401k loan is a good option to stop foreclosure in Texas. However, realize that if you fail, you not only lose the house, you also lose a sizable chunk of your retirement monies.
The 401k loan is one good option for people trying to stop foreclosure in Texas. The Foreclosure Survival Guide details a dozen other ways for homeowners to save their homes and credit. Download your copy today.