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View Full Version : Proposed Bill Would Subsidize Purchases of Foreclosed Homes




bobbyw24
08-18-2011, 08:35 AM
Rep. Gary Ackerman (D-New York) Tuesday announced his plan to propose a bill to reduce the housing glut, create jobs, and stimulate the economy.

Deriving inspiration from the success of the Homestead Act of 1862 – which offered 160 acres to Americans in order to promote Western settlement – Ackerman’s Homestead: Act 2 aims to achieve these goals with three targeted initiatives.

Addressing 3 million properties currently depressing the market, Ackerman proposes a subsidy of up to $20,000 for down payments on foreclosed homes bought by owner-occupants and a tax incentive for investors who purchase foreclosures for rental properties.

Available to the first 2 million eligible, single-family borrowers, the subsidy would function as a loan that would be forgiven in one-fifth increments over five years, provided the borrower stays in the home.

http://www.dsnews.com/articles/new-york-congressman-to-propose-down-payment-subsidy-2011-08-17