Monday, September 21, 2009

1 in 4 FHA Mortgage Loans in Foreclosure or Delinquency

BY: Mac Slavo- September 21st, 2009

The current FHA report is now out for servicing delinquencies and defaults, and as expected it is indeed worse, not better. The administration continues to LIE about claimed “improvements” in the character of home finance.

22.9% of all FHA loans are either delinquent or in foreclosure.—

Let’s see - 30 days are up, 60 days are up, 90+ days are up, default+foreclosure is up and 60+ including foreclosures are of course up.

Improvement? Where? This is current as of August now and the internals continue to deteriorate.

For a closer look at the specific deflault rates, we urge readers to visit the Market Ticker and read Karl Denninger’s full analysis. No matter what you hear in the mainstream media, or from Wall Street, or from the White House, the numbers do not lie. We’ll see how the numbers get spun on this one, though we would not be surprised if most people watching cable and network news never hear about it.

The 1 in 4 number may be alarming to some, but in reality, all of these loans are backstopped by the Federal Government, so if the SHTF, we can feel confident knowing that Uncle Sam the taxpayers will take care of the bill for those predatory loans. Responsible tax payers understand that sometimes individuals get greedy, bite off more than they can chew, and then need a bailout so they don’t lose their homes. We are true believers in taking from those with the ability to pay and giving to those without that ability. Hey, this is America, and that’s what we’re all about.