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So we are basically trying to deal with a "housing crisis" by exacerbating the coming "retirement crisis." Got it...


If you look at the 'short title' of the bill at the bottom of page 1, you can get an idea of the magical thinking that is going on:

This Act may be cited as the "Hardship Outlays to protect Mortgagee Equity Act of 2011" or as the "HOME Act of 2011"

Ummm....if there were any 'equity' to protect, the house could be sold, completely relieving the homeowner of having to make the mortgage payments without raiding the 401(k). Instead, Congress seems to be encouraging people to raid the small amount (in comparison to what will be needed) that has been saved for retirement to try to fill in the black hole of having 'invested' in a home that has gone down in value.

I doubt that most houses will go back up in value enough to fund retirement, if the retiree is even willing to sell said house (which many seem to be reluctant to do).

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