Skip to comments.FHA Mortgage Default Rate Soars, Here Comes Another Tidal Wave Of Foreclosures
Posted on 02/02/2010 7:12:46 AM PST by blam
FHA Mortgage Default Rate Soars, Here Comes Another Tidal Wave Of Foreclosures
Dina ElBoghdady and Dan Keating, WaPo
Feb. 2, 2010, 7:36 AM
The share of borrowers who are falling seriously behind on loans backed by the Federal Housing Administration jumped by more than a third in the past year, foreshadowing a crush of foreclosures that could further buffet an agency vital to the housing market's recovery.
About 9.1 percent of FHA borrowers had missed at least three payments as of December, up from 6.5 percent a year ago, the agency's figures show.
Although the FHA's default rate has been climbing for months and eating into the agency's cash, the latest figures show that the FHA's woes are getting worse even as the housing market shows signs of improvement.
The problems are rooted in FHA mortgages made in 2007 and 2008. Those loans are now maturing into their worst years because failures most often occur two to three years after a mortgage is made.
(Excerpt) Read more at businessinsider.com ...
ARMs, CRE and now FHAs, it’s all beginning to sound like Y2K
Low down payment + low interest rates + low FICO scores = default
My daughter and her husband are having a terrible time buying a house. They are first time buyers and are on their second month of waiting for an answer on a short sale. There are few homes in their price range that are not short sales or foreclosures. The whole housing market is just a huge mess.
I’m so thankful my house is paid for. If I had to move to find work, that is one less thing I’ll have to worry about.
Take this house and shove it!
I’m in the real estate industry for 18 years.
bottom line - carter and the CR Act, clinton opened the flood gates on the CR Act, Fannie & Freddie and the DemocRATS forced lenders to make loans to people who weren’t qualified. bawney fwank, chris dodd, franklin raines are economic terrorists. add to that the stupid and dumb Obama not being able to fix properly and voila — prolonged real estate depression that affects EVERYONE.
Do not forget about the coming commercial real estate collapse.
Things are about to get Helen Thomas ugly.
When it comes to foreclosures I hear alot of excuses but not alot of genuine good reason why after blowing through their savings they couldn't get any job to keep the mortgage paid or short sold the house. Capitalism is wonderfully Darwinian isn't it, be a lazy, short sighted drone, sleepwalking through life with your HS Diploma at some job a 17 year could do or an illegal and you are a prisoner of the man. You know the type, the slacker druggy, hipster who sleepwalked through adolescence, the kind Democrats love..so living by their own drum beat, how cliched. Now they are 35 at some crappy 40k a year job where they spend 39 hours a week being ridden and micromanaged. They lose that said job and with the 50k in CC debt they aquired getting the wife breasts implants and the Harley, the shame spiral starts ending in substance abuse and foreclosure. Then... they vote for a doofus like Obama to help them out of their pathetic dependent lives. I am sick of paying for your stupid Brittney and Chase's health insuance through SCHIP. I am done listening to you in some Farnk Luntz focus group about how your dumb blue collar as* thinks Obama is cleaning up the mess GWB left. You are not entitled to anything dummy, your home, your donorcycle, your quad, your tribal tattoos. You're sheep and sheep get slaughtered.
I don’t think that class warfare rant is any more appropriate than what the dems launch. Those that made stupid decisions have already been booted to the curb, it is hardworking folks who now have lost their jobs being booted and I don’t think their circumstances should be considered lightly.
This is where Obama wants us all.................
John Galt couldn’t have said it better, FRiend..............................
And... There ain't many things left on earth that are that ugly.
Oh yea so "The rich" are consuming all the entitlements, avoiding all the taxes, asking for all the stipends for health insurance, tax credits for everything. Those poor "working class", just innocent pawns....you're naive and you sound like a Democrat refusing to be honest about who put the country on its current trajectory. It's the sub 50k a year household incomes, them paying 30k into SS and taking out 60k, getting EIC, getting 7k back when they paid 2k in FICA. But then maybe I hit a nerve., when I was making 30k a year I used to vociferously defend the blue collar types also, until I woke up and realized why a 45 year old guy is making 38k a year with 0 in the bank is his own damn fault.
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