FHA Takes $4.6 BILLION Hit Its Just Taxpayer Money »

Posted By dog7777 1 year, 5 months ago in News

Prop it 1 Drop it

Due to unforeseen high default rates on home loans, the FHA expects to lose $4.6 billion. The causes of these losses are cited as the FHA; s seller-financed down payment mortgage program, which in particular has seen high delinquency and rates of foreclosure. In order to avoid the losses, the FHA will have to renew efforts to the end the seller-financed down payment program to which 35% of losses in 2007 can be attributed.; *Editor' s translation: Leave it to the government to come up with a home loan program where, if the buyer does not have the low 3% down payment normally required, the seller can pay that for them. So, from day one, the buyers have zero equity and zero incentive to continue monthly mortgage payments. Duh… wonder why the FHA is losing BILLIONS.