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Bryan & Allison Devore

A new bill to make it easier to stay in your overpriced home

A new bill is being proposed that would allow homeowners to tap into their 401(k) accounts to make their mortgage payments as well as to play catch-up on past-due payments without having to pay the stiff 10% early withdrawal tax. But is this really a good idea? Would this just keep people in their overpriced homes longer? If homeowners wind up giving back their homes (or selling via a short sale), then the result is the same AND they no longer have the 401(k) safety net. Is this really good for people?