Is The FHA Headed For A Bailout? FHA Mortgage Delinquencies Skyrocket

Is The FHA Headed For A Bailout? FHA Mortgage Delinquencies Skyrocket

Is The FHA Headed For A Bailout? FHA Mortgage Delinquencies Skyrocket

FHA Mortgages in Trouble

If  you listen to real estate pundits (and you should not) you might think that the delinquency or foreclosure rate on loans would be declining, which would be accurate for those loans backed by Freddie Mac, Fannie Mae or those owned by banks – but the opposite would be true for those backed by the FHA.

The number of FHA loans 90 days or more delinquent jumped almost 27 percent during the past 12 months ending March 31, while foreclosures spiked 17 percent.

And what about the re-defaults on loan modifications? According to the Office of the Comptroller of the Currency, FHA loans that have gone through modification re-default more than 48 percent of the cases versus 36.2 percent of loans overall.

We Americans may be on the hook for a possible bailout of the FHA. Although the FHA does not make loans but they do back them if a borrower stops paying.

No skin in the game?

Many borrowers find FHA loans attractive because they often require only 3 ½ percent down and allow for lower credit scores. But if a real estate situation turns sour (or upside down) then the borrower doesn’t have that much to lose by walking away. Now those accessible loans may come back to haunt us all.

For those counting, FHA-backed loans made up more a whopping 29% of the market for home purchases in the first quarter of 2012.

Stay tuned to see if or when the FHA bailout occurs.

Is The FHA Headed For A Bailout? FHA Mortgage Delinquencies Skyrocket

Is The FHA Headed For A Bailout? FHA Mortgage Delinquencies Skyrocket

Is The FHA Headed For A Bailout? FHA Mortgage Delinquencies Skyrocket

Is The FHA Headed For A Bailout? FHA Mortgage Delinquencies Skyrocket

Is The FHA Headed For A Bailout? FHA Mortgage Delinquencies Skyrocket

Is The FHA Headed For A Bailout? FHA Mortgage Delinquencies Skyrocket

Is The FHA Headed For A Bailout? FHA Mortgage Delinquencies Skyrocket

Is The FHA Headed For A Bailout? FHA Mortgage Delinquencies Skyrocket

Is The FHA Headed For A Bailout? FHA Mortgage Delinquencies Skyrocket

Is The FHA Headed For A Bailout? FHA Mortgage Delinquencies Skyrocket

Is The FHA Headed For A Bailout? FHA Mortgage Delinquencies Skyrocket

Is The FHA Headed For A Bailout? FHA Mortgage Delinquencies Skyrocket

Is The FHA Headed For A Bailout? FHA Mortgage Delinquencies Skyrocket

Is The FHA Headed For A Bailout? FHA Mortgage Delinquencies Skyrocket

Is The FHA Headed For A Bailout? FHA Mortgage Delinquencies Skyrocket

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1 Comment

Filed under Banks, Foreclosure, Loan Modifications, Mortgages

One response to “Is The FHA Headed For A Bailout? FHA Mortgage Delinquencies Skyrocket

  1. Pingback: Mortgage Financing Increases While Distressed Sales Sink | Resource Blog

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