Homeowners Choose Between Foreclosure, Retirement

By Jim Burress

Atlanta, GA – Keep your house for now. Or face having no money to retire on later.

That's the decision some homeowners are having to make.

Consumer Credit Counseling Services of Greater Atlanta finds nearly 30-percent of those calling for foreclosure prevention counseling have already tapped into their 401(k) or other retirement accounts.

CCCS spokesman John McCosh says what's troubling is that most people have done just as they're supposed to.

"You put it into a home. You set aside money for retirement. And that's what responsible people do. And both of those next eggs are really taking a hit."

McCosh says depleting a retirement fund is usually just a temporary solution.

Compounding the problem--nine nine out of 10 surveyed were below retirement age, meaning they not only had to pay taxes, but also a 10-percent penalty for early withdraw.

CCCS says the best alternative is to seek help early.

Jim Burress, WABE News.