A Bill Would Allow Bank Owned Purchases with Retirement Funds


This bill is way over due- A bill introduced in the U.S. House of Representatives would waive withdrawal penalties on certain retirement plans if the funds were used to buy a house that has been in foreclosure for a year or more,

The legislation by changing the rules can help the bank owned properties sell quicker their aim is to promote REO home purchases by owner occupants or second home owners rather than investors just looking to “flip” a foreclosure for fast money. According to the bill, purchasers must agree to hold the property for at least two years to be exempt from early retirement plan withdrawal penalties.


Hopefully we will see an approval in short order. You can role your IRA into investment properties like apartments and other real estate so why not bank owned property. I know this could have a major impact throughout the country but to Cities like Asheville, Waynesville, Maggie Valley and Weaverville real estate has been hit hard with foreclosures because of the high second home market this will be a big help cleaning up a lot of inventory.