FHA In Financial Trouble: Bailout Likely
Federal Housing Administration's Financial Problems Will Hurt Housing Prices
According to this Wall Street Journal (WSJ) article,
FHA Nears Need for Taxpayer Funds, the Federal Housing Administration (FHA) is in deep financial trouble, and as a result, the FHA will need a taxpayer bailout soon. It appears that the government propping of the housing market at taxpayer expense goes on and on despite the poor results and future problems that it creates. It is a shame that the US government keeps trying to fool home buyers into thinking the housing market is recovering only to leave them underwater when the housing market falls again. When the subprime mortgage market vanished, the FHA stepped in and made a lot of loans to would-be subprime borrowers. It should be no surprise that a lot of these loans would go bad. As of September 2012, the FHA insured almost 739,000 loans that are 90 days or more past due or in foreclosure. This is an increase of more than 100,000 loans from one year ago. This number of seriously delinquent loans represents approximately 9.6% of the FHA's $1.08 trillion worth of insured mortgages. Since the FHA insured mortgage loans accounted for nearly 1/3 of all mortgage loans to owner occupants (i.e. home buyers), the collapse of the FHA will significantly hurt the housing market.
If you have an FHA insured mortgage loan, there is a great short sale program for you called the HUD Preforeclosure Sale Program (see
FHA Insured Mortgage Foreclosure Help for more information). Please do not let the bank foreclose on you. If you have a property and you owe more than the property is worth and have a HAFA eligible mortgage loan, an FHA Insured mortgage loan, a VA Guaranteed mortgage loan, or any type of mortgage loan, and you have missed payments, or will miss payments, please
contact Franklin Tennessee Short Sales and Foreclosures Expert for a free no obligation consultation to discuss your foreclosure prevention options.
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Jim McCormack is a Nashville Real Estate Broker who provides Expert Real Estate Solutions for for Nashville, Brentwood, Franklin, Nolensville, Spring Hill, Thompson’s Station, Murfreesboro, Smyrna, LaVergne (La Vergne), Antioch, Columbia, Mt. Juliet (Mount Juliet), Springfield, Gallatin, Hermitage, Hendersonville, Clarksville and Middle Tennessee (Davidson, Maury, Montgomery, Robertson, Rutherford, Sumner, Williamson and Wilson Counties) Homeowners and Real Estate Investors Facing Foreclosure and Needing to Short Sell Their Homes and/or Investment Properties. Jim Specializes in Short Sales and Foreclosures and Providing Sellers Short Sale Help and Foreclosure Help. Jim's Help is Free to Nashville TN Short Sale Sellers. Jim Helps Sellers Stop Bank and Mortgage Foreclosure with a Short Sale, or a Fast Cash Offer. Avoid Foreclosure by Working Directly with a Nashville Tennessee Real Estate Expert and Investor who is Uniquely Skilled, Honest, Compassionate, Caring and Exceptionally responsive to the needs of his clients. Jim Encourages You to See What His Clients Say About Him. For Buyers, Jim understands the Various Nashville Tennessee Housing and Investment Real Estate Markets Extremely Well and is Particularly Skilled at Assisting Buyers with Determining the Market Values of Homes and Investment Properties. Due to that Real Estate Valuation Expertise, Jim can Help Nashville Home and Investment Property Buyers Get Fantastic Deals on Their Nashville Area Real Estate Purchases.
