Bill Would Help Struggling Homeowners

A state law­maker is intro­duc­ing a bill to help strug­gling home­own­ers. The bill would waive state tax penal­ties on early with­drawals from retire­ment accounts when the money is used to bring a delin­quent loan cur­rent and avoid fore­clo­sure. Assem­bly­man Chris Holden, of Pasadena, says more and more peo­ple are tak­ing money from their retire­ment accounts to pay their mort­gages. Doing so, can result in a ten-percent fed­eral tax penalty and two-and-a-half per­cent state penalty.