\nhttp://www.mechanicsofmoney.comThe days recent financial and money questions answered.en-ushttp://www.mechanicsofmoney.com/question.php?QuestionId=468I bought my house 3 years ago and paid $362,000. My home is worth about $289,000. I have two mortgages on the property totaling $2,900. This amount reflects interest only, and I modified my first loan 3 months ago. Due to hardship, I'm behind 2 months on my mortgage. My credit is very weak (555) and my chances of getting another loan are slim. Should I give back the home and rent knowing it will affect my credit even more then what it is?; I don't know how long I could keep paying my loans and yet the debt amount is still the same.2009-11-29http://www.mechanicsofmoney.com/question.php?QuestionId=467I have $2,500 a month that I can spare for savings. I am currently getting 2 percent in my Credit Union account but would like to earn more in a low risk investment up to 5 years. What advice can you offer?;2009-11-21http://www.mechanicsofmoney.com/question.php?QuestionId=466I live solely on Social Security. I have an IRA that is a rollover from a 401K, I would like to up it in a Roth IRA. If I do this, when I pay the taxes, will it show up as income and be considered as income for purposes of Social Security?;2009-11-19http://www.mechanicsofmoney.com/question.php?QuestionId=465I have about $19,000 in my 401k and I was laid off four months ago. The company I was working for might go out of business. A couple of people have told me I could lose my 401k if the company goes out of business and I should pull it out. The 401k is thru State Farm. I want to pull out about $4,000 after the first of the year and invest the rest in a retirement account with someone else. What should I do?;2009-11-11http://www.mechanicsofmoney.com/question.php?QuestionId=461Would it be smart to pay cash for a second home get full title and then take out a loan for the purchase price or less?;2009-10-01http://www.mechanicsofmoney.com/question.php?QuestionId=460We have built a house on 20 acres and have enough equity in it to sell and purchase another lower priced house. We have about 5K for retirement. We are in our early 40's. Does it make more sense to sell the house and buy a lower priced house and save the house payment towards retirement, or stay in the house and have the hopefully appreciation of the land?;2009-09-22http://www.mechanicsofmoney.com/question.php?QuestionId=448Is my wife obligated to pay my mortgage with the life insurance proceeds in case that I die?;2009-04-25http://www.mechanicsofmoney.com/question.php?QuestionId=447I am 26 years old and I recently got married. We are looking to buy a house before December 1 so we can take advantage of the $8,000 tax credit. We have around $5,500 on 0 percent interest credit cards and I have $11,000 in student loans at 6.8 percent. My wife�s insurance policy cash value is around $5,500 and mine is around $1,200. We have good credit both above 720�s. Should we cash in our policies and pay off the credit cards so it looks better when we apply for a mortgage?; Should we cash them in and use the money as a down payment on a house?; After we get the house and the $8,000 tax credit should I use the money to pay off my student loans?; Can you use the tax credit as a down payment?; Should we put the money in the bank as security and to help make the mortgage payments?; What should we do?;2009-04-15http://www.mechanicsofmoney.com/question.php?QuestionId=444I have received about $9,000 in federal/state income tax refunds. I want to contribut the money to my solo 401(k) as I do not need the money at the moment (I already have an emergency fund, I have a somewhat stable government job, I do not have any debts, I have pre-paid my disability insurance policy, and I am 32 years old). My 401(k) essentially holds index funds -- now only worth $10,000. My question is, big picture, what type of investment should I be considering for these funds?; I am thinking I would double down on index funds and see what happens, but I am not sure if this is the best way to go. Any suggestions would be appreciated.2009-03-29http://www.mechanicsofmoney.com/question.php?QuestionId=443I have a boat loan in excess of $100,000. I can't pay it off. If the loan company repossesses my boat and it does not satisfy the total owed, what can I be accountable for?; Can they take my home or any assets I have left?; What's the worst and best case scenario?;2009-03-22