As the high rate of home mortgage foreclosures continues, bills are being introduced on Capital Hill to help homeowners who are in danger of losing their homes to foreclosure. Legislation may be very effective in giving foreclosure relief to homeowners.
Tap into Your Retirement Penalty Free to Prevent Mortgage Foreclosure
One bill that was just introduced this October would allow borrowers to tap into retirement accounts, without penalty, in order to avoid a mortgage foreclosure. It is called the Home Ownership Mortgage Emergency Act and would allow borrowers who are 60 or more days late on their mortgage payments to access up to $100,000 in penalty free retirement funds. These funds can help to bring their mortgages current or to refinance their home loans into more affordable and less foreclosure prone mortgages. Borrowers are required; however, to pay these loans back within three years to avoid the 10% penalty for early retirement withdrawal. As a "temporary relief program," this bill will expire at the end of 2009.
Now You Can Get the Help You Need to Prevent Foreclosure on Your Home
The Home Ownership Mortgage Emergency Act is designed to help low and middle income homeowners that are at risk of foreclosure. Income limits do apply and joint filers with a combined income of $166,000 or less are eligible as well as single filers with an adjusted gross income up to $114,000. Mortgages are also available for owner occupied principal residents only.
This and other bills are being considered throughout the states and in Congress as well to help homeowners at risk of mortgage foreclosure. If you are in a home foreclosure bind, you may get some help from the government. However, waiting could heighten your foreclosure risk. Your best bet is to call your lender or a HUD counselor right away to get the help you need and prevent foreclosure before it's too late.
Mortgage Credit Problems Columnist
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