How can I take a hardship withdrawal without having to first ruin a perfect credit rating? Case in point - If I cannot pay my mortgage due to job loss, do I really have to be at the point of foreclosure (where my credit rating will be in ruins) before I can withdraw to paydown my mortgage and refinance?

What if I sell my house and need the hardship withdrawal to pay towards a new house (assuming I cannot get a mortgage due to job loss). Could I avoid having to ruin my perfect credit in this scenario?

A hardship withdrawal is for an immediate need so if there is no threat of foreclosure you cannot get that, but if the home that you are buying is going to be your principal residence you could get the withdrawal toward payment also I know with my husbands he is allowed to take loans.

I would not be so anxious to pull money to pay a mortgage especially if home upside down in value. Job loss means you need to have emergency money on hand. Home might not be saved. But you will be worse off with out cash in hand. Arranging with mortgage company to restructure payments due to hardship maybe better to buy some time. So many people purchased home with 100% programs and not worth keeping home especially if value not there. Not sure if switching to % only if property has equity. Better pay interest only and it be deductable and wait to see if market turns and free up money.

newsletter may help DTD & Associates Inc. HBW "Helping Build Wealth" - Managing Cash : Article: Managing Cash (http://www.dtdassociates.com/content.cfm?ContentID=62)

Pete