WASHINGTON, D.C.—U.S. Sen. Johnny Isakson (R-Ga.) and U.S. Rep. Tom Graves (R-Ranger) introduced the HOME Act on Wednesday, a bill to allow Americans to make withdrawals from their retirement accounts to pay timely mortgage payments.
“I am delighted to join Congressman Graves in introducing the HOME Act today,” said Isakson, who spent over three decades in the real estate industry. “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. I firmly believe that economic recovery in this country will not occur until the housing market bounces back. To that end, this legislation will help strengthen the American housing market because it will lead to a reduction in foreclosures and in turn will help stabilize home values.”
Said Graves: “The housing market has borne the worst of our current economic downturn. Buyers have been unwilling to buy and sellers unable to sell. At the same time, foreclosures have increased, forcing families out of their homes while flooding the housing market with unwanted and abandoned properties — further eroding home values in our communities. Many Americans who have been responsible enough to save for retirement in the past now find themselves out of work. Unfortunately, under current tax law these men and women cannot withdraw retirement funds to pay for their homes without paying a ten percent penalty to the IRS — often resulting in late payments, foreclosures, and at a minimum punishing a taxpayer who has saved responsibly in the past.”