FHA Takes $4.6 BILLION Hit … It’s Just Taxpayer Money
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.
So where can I get a cheap house?
I have followed this blog for about 4 years – everything it predicted is coming true.
Man, am I glad I talked my dad into not buying a house he most likely couldnt afford, 8 years ago, and I was only 15! Too bad all these sob’s didnt do the same.