Real Estate News

A bill was introduced in the U.S. House of Representatives that would waive withdrawal penalties on certain retirement plans if the money is used to buy a home that has been in foreclosure for a year or more.  This bill was introduced recently by congressman and real estate professional Bill Posey, R-Fla, and is expected to apply to Roth IRAs, 401(k) plans, and company pensions.

The intent is to promote purchases of these types of properties by owner occupants or second homes rather than people looking to “flip” them.  According to the bill, purchasers must agree to hold the property for at least two years to avoid penalties associated with the withdrawals.

The “second home” idea could be an inviting one as California (25%)and Florida (9%) accounted for nearly 34% of foreclosure activity during the first quarter according to RealyTrac.

The bill has been sent to committee for further consideration.

HOME-IMPROVEMENT REBATES ADVANCE IN CONGRESS

By Robert Schroeder

5:17 PM ET May 6, 2010

WASHINGTON (MarketWatch) — A bill that would allow homeowners who install
energy-saving devices to claim rebates cleared the U.S. House of Representatives on Thursday, and now heads to the Senate for a separate vote.

The bill is strongly backed by the White House, and advocates say it will spur job creation as well as improve the environment.

“Today’s House passage of the Home Star program brings us one day closer to putting American construction workers back to work and helping millions of cash-strapped Americans make cost-saving, energy-efficiency improvements to their homes,” said Kateri Callahan, president of the Alliance to Save Energy.

Yet Republicans were nearly united in opposition to the $6 billion bill, saying it was too expensive.

The measure passed on a vote of 246-161.

The bill has earned the nickname “cash for caulkers,” after last year’s “cash for clunkers” program that let automobile owners trade in older cars for more fuel-efficient ones.

Homeowners could receive as much as $3,000 for installing energy-efficient doors, windows and insulation. Read the text of bill.

Republicans attached a provision that would kill the bill if it’s not paid for.
“What’s remarkable isn’t that the Republican motion passed, but that it was necessary in the first place,” said House Republican Leader John Boehner after the vote.

“Why, when the American people are asking, ‘Where are the jobs?’ are we wasting time debating more ‘cash for caulkers’?” he asked.