« previous   next »

The FHA is Blowing Up: Bad News for the Housing Market


By Call it Crazy   Follow   Thu, 15 Nov 2012, 4:00am PST   1,304 views   14 comments
Watch (0)   Share   Quote   Permalink   Like (1)   Dislike (2)  

A very important article came out from the Wall Street Journal yesterday titled “FHA Nears Need for Taxpayer Funds,” and it outlines the serious financial problems facing the Federal Housing Administration. For those that are unaware or need a refresher, the FHA has been the key element to the phony “housing recovery” the government has been trying to create. In the wake of the collapse of 2008, Fannie Mae and Freddie Mac blew up and what was left to pick up the pieces was the FHA. No private player would issue loans with down payments of 3%, but this was no problem for the FHA!

Interestingly enough, a lot of the subprime borrowers that blew up the housing market the last time became the primary customers of the FHA. Let’s see, 3% down and subprime borrowers…what could possibly go wrong?!

http://libertyblitzkrieg.com/2012/11/15/the-fha-is-blowing-up-bad-news-for-the-housing-market/

Comments 1-14 of 14     Last »

pazuzu   Thu, 15 Nov 2012, 4:41am PST   Share   Quote   Permalink   Like (1)   Dislike     Comment 1

No problemo, a combination of money printing plus austerity (raise taxes & cut benefits) for middle and lower class serfs will take care of this.

Strategic Renter   Thu, 15 Nov 2012, 7:19am PST   Share   Quote   Permalink   Like   Dislike     Comment 2

Audit: FHA has exhausted its capital reserves, has a $13.5 billion deficit

BobMSN   Thu, 15 Nov 2012, 11:26pm PST   Share   Quote   Permalink   Like   Dislike     Comment 3

Don't worry. As long as we can dig into that 1% (now 2% based on Obama's recent statement) money well, we are fine.

Too bad, we only have 98% left to occupy anything. In the near future, I can image that 50% left to occupy the Wall Street. The slogan becomes “tax the 50% superrich”.

uomo_senza_nome   Thu, 15 Nov 2012, 11:33pm PST   Share   Quote   Permalink   Like   Dislike     Comment 4

http://brucekrasting.com/geithner-to-bailout-fha/

Call it Crazy   Thu, 15 Nov 2012, 11:39pm PST   Share   Quote   Permalink   Like   Dislike (3)     Comment 5

uomo_senza_nome says

http://brucekrasting.com/geithner-to-bailout-fha/

Bailed Out with YOUR tax dollars...... I can hear Geithner now... "Hey Ben, can't you get those printing presses to run any faster???"

CaptainShuddup   Fri, 16 Nov 2012, 12:13am PST   Share   Quote   Permalink   Like   Dislike (3)     Comment 6

CNN had that phrased in a link this morning. Though when I clicked on it, I got the CNN custom error "Page not Found" page.

CaptainShuddup   Fri, 16 Nov 2012, 12:13am PST   Share   Quote   Permalink   Like   Dislike (3)     Comment 7

Though I'm curious if they go under then would that mean I still owe?
IF so then who would I pay?

Call it Crazy   Fri, 16 Nov 2012, 12:35am PST   Share   Quote   Permalink   Like   Dislike (3)     Comment 8

CaptainShuddup says

CNN had that phrased in a link this morning. Though when I clicked on it, I got the CNN custom error "Page not Found" page.

I guess they must have received a "phone call".....

Call it Crazy   Fri, 16 Nov 2012, 12:36am PST   Share   Quote   Permalink   Like   Dislike (3)     Comment 9

CaptainShuddup says

Though I'm curious if they go under then would that mean I still owe?

IF so then who would I pay?

They won't go under... you'll just be paying them back with less valuable FRN's....

PockyClipsNow   Fri, 16 Nov 2012, 12:46am PST   Share   Quote   Permalink   Like (1)   Dislike     Comment 10

Fha is really zero down often. Seller is allowed to pay the 3.5% so they tack it onto price.

CaptainShuddup   Fri, 16 Nov 2012, 12:58am PST   Share   Quote   Permalink   Like   Dislike (2)     Comment 11

PockyClipsNow says

Fha is really zero down often. Seller is allowed to pay the 3.5% so they tack it onto price.

It did seem that way.

RentingForHalfTheCost   Fri, 16 Nov 2012, 1:13am PST   Share   Quote   Permalink   Like   Dislike     Comment 12

Collective genius in FHA. Stop the bleeding and get back to reality. If it was up to me you wouldn't get a dime of help. Where is the accountability? I'm in favor of the dealth penalty in this situation.

CaptainShuddup   Fri, 16 Nov 2012, 3:16am PST   Share   Quote   Permalink   Like   Dislike (2)     Comment 13

LiarWatch says

Houses depreciate ALWAYS.

Really?
O.K. I'll but that but only in terms of inflation adjustment, even though I don't count inflation adjustment.
But in this case it's applicable.
Say House sells for 20K in 1952 and for its time, that house is considered 10K more than the average priced house.
Fast forward to 2012 the house sells for $150K - $160K or the average price for a house in the South. While the house certainly did appreciate from 1952 from the value of those times. It should be worth 300K if you go by the Case–Shiller index.

Call it Crazy   Fri, 16 Nov 2012, 3:32am PST   Share   Quote   Permalink   Like   Dislike (3)     Comment 14

E-man says

Basically, if home prices appreciate, the homeowners win. If they depreciate, the government picks up the tab. It's so easy to walk away from 3.5% down or 0% down.

Yep, you get the seller to give you a "concession" at closing to cover the 3.5%, so the only thing you lose is what you paid in closing costs...

Plus, if you sit and squat for a few years and don't pay and wait until you get thrown out, the return on your original investment is HUGE...

What a country!!!!

Call it Crazy is moderator of this thread.

Email

Username

Watch comments by email

home   top   share   link sharer   users   register   best of   about   questions or suggestions? write p@patrick.net