Two Republicans introduced what is termed the Home Act bill in congress on Wednesday. Individuals could not pull up to half of their retirement account not to exceed $50,000 provided the funds are directly used to pay off their current mortgage within 120 days of withdrawel. The normal 10% early withdrawel penalty would be waived. Multiple withdrawels can be made within their lifetime until the individual reaches the $50,000 cap.
"This bill will help Americans who risk foreclosure use their own resources to make their mortgage payment on time without being penalized by the federal government," Isakson said. "I firmly believe that economic recovery in this country will not occur until the housing market bounces back." >> More.
This bill is extremely interesting. On one side it would allow home owners in dire need to utilize their retirement funds. However, by removing money it would probably force individuals to work further into retirement to cover the lost funds and interest earned on that money.
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