Foreclosed Homes More Appealing to Young Buyers

Foreclosed Homes More Appealing to Young Buyers
Wall Street Journal

Younger Americans and renters are more likely to buy homes out of foreclosure than seniors or current homeowners, according to a new survey from Trulia.com and RealtyTrac. Foreclosures tend to offer the biggest discounts, and their increasingly affordability has made them particularly attractive and marketable to first-time buyers, typically younger consumers that come out of the rental pool. More than two-thirds of current renters would consider buying a home in foreclosure, compared to half of current homeowners, according to an online survey by Harris Interactive that interviewed 2,397 adults in early May.

Obama Signs Mortgage Bill into Law
Washington Post

President Barack Obama said homeowners facing foreclosure would have a second chance under a measure he signed into law on Wednesday, but he added consumers still must live within their means. The law — officially called the Helping Families Save Their Homes Act — expands an existing $300 billion program that encourages lenders to adjust a mortgage if the homeowner agrees to pay an insurance premium. The program, set to expire in 2011, would swap out a homeowner's high-interest rate for a 30-year fixed loan backed by the Federal Housing Administration.

Ohio House Votes to Halt Foreclosures
Cincinnati.com

Ohio moved one step closer Wednesday to a six-month moratorium on home foreclosures, which have risen by more than 50 percent statewide since 2004. The Democratic-led Ohio House approved the temporary ban on new filings, by a 54 to 43 vote along party lines. But state legislators, after more than two hours of debate, disagreed about the severity of the problem and whether a ban will stop banks from taking homes from Ohioans unable to make mortgage payments. No state legislature has passed a moratorium on foreclosures, and Ohio's still requires Senate approval, which is unlikely soon. Ohio's legislature approved a two-year ban on foreclosures during the 1930s.

GM Finance Arm to Get a Fresh Bailout
Wall Street Journal

The Treasury Department is poised to inject more than $7 billion into GMAC LLC, the first installment of a new government aid package that could reach $14 billion, according to people familiar with the matter. As a result of the move, the government within months could end up owning both GMAC and General Motors Corp. The GM plan being devised by President Barack Obama's auto task force calls for the government to emerge with a majority stake. And the increasing infusion of taxpayer money into GMAC could turn the U.S. government into a majority shareholder there.