For your immediate question

I’d say contact the mortgage company and tell them what happened. If you can afford to pay double next month, ask if you can do so. If you can only afford 1.5x payments for TWO months, that will get you caught up as well.

But like Sharon, I’d be worried if this was going to happen AGAIN. You really have to get that sorted before going forward…
Good luck!

Sorry to hear of your trials…

Suddenly and without warning has to be awful. However my first question would be subsequent garnishments to this account. Is the money they received enough to pay it off, or do you still owe more toward that end? I’m thinking in terms of repopulating this account… For instance could your husband’s pay check hit that account and it be gone again?

Now to your direct question about paying the mortgage. I believe the early penalty withdrawal is more like 35 or 40% depending upon your tax bracket. You’ll notice a nasty phrase “an additional” in the write up. I believe the companies withhold the tax bracket amount before disbursing it to you, so the money you get back might not be what you were expecting in its entirety.

You’re at the point now where desperate measures are called for though… I can see that. One wants to pay the mortgage but you have to take into account living until the end of the month, and get your other issues cleared up to keep you out of this vicious cycle. I think I would rather you borrow the money from someone than touch the 401K as its going to be an awful penalty versus paying someone back with interest.

Last but not least, you gotta do what you have to do, just make sure you’ve thought it ALL the way through. What will happen to your bank accounts and the ramifications for future deposits to that institution (it might not be enough to close one account and open another); the true withholding which will occur to your 401K…