The Federal Housing Administration Is Turning Homeowners Into Squatters


By Call it Crazy   Follow   Mon, 3 Dec 2012, 7:51am   739 views   20 comments
Watch (0)   Share   Quote   Permalink   Like (2)   Dislike (2)  

“The Federal Housing Administration finds itself in rather dire fiscal circumstances as mortgage after mortgage after mortgage that it made to people who should never have been given a mortgage are defaulting every hour. 17% of the FHA’ mortgages are now delinquent and this is a shocking number.”

So what is the Obama Administration doing about it, asks Dennis.

“Well it is extending the so-called grace period being allowed to its mortgagees. Starting in August of last year, the FHA began extending this grace period, giving dead beats a longer period of time in which to beat dead. Now, if you are unemployed but have an FHA guaranteed or issued mortgage you can miss a full year’s payments and not be considered delinquent… up from what we considered an already far-too-lenient 3 months. After a year in the grace period if no payments are received, the FHA will begin foreclosure. However, as we understand it, if one payment is made before the twelve months is up, the mortgage is considered current and the clock begins again.”

Dennis concludes, “Really, you cannot make this stuff up. What we have then is a growing pool of mortgagees who know that their house shall eventually be foreclosed upon and thus whose upkeep on the house diminishes with each missed payment. As one prescient economist once said, ‘Never in history has a rented car been returned waxed.’ Always in history ‘renters’ treat houses more poorly than owners, and owners not making payments are not even renters… they are merely squatters.”

http://www.businessinsider.com/housing-fiscal-cliff-dennis-gartman-2012-12#ixzz2E0KXqE4B

Viewing Comments 1-20 of 20     Last »     See most liked comments

  1. BobMSN


    Follow
    Befriend
    6 threads
    107 comments

    1   11:42am Mon 3 Dec 2012   Share   Quote   Permalink   Like   Dislike  

    So nice and so generous! I hope I am one of the lucky squatters.

    Is this one of the gifts given by Obama for people voted for him? With tax payer’s money, government can certainly do a lot of “nice” things. Unfortunately, tax payers would have to pick up the bills for the free rent. To be fair, Obama and the director of FHA should contribute their one month salary as “fair share”.

  2. pdg


    Follow
    Befriend
    11 comments

    2   11:51am Mon 3 Dec 2012   Share   Quote   Permalink   Like   Dislike  

    Am I reading this right? So they only have to pay one month per year to stay current? So they only pay 1/12 of their mortgage? Never "owning" of course.

  3. Mark D


    Follow
    Befriend
    240 threads
    867 comments
    Simi Valley, CA

    3   12:08pm Mon 3 Dec 2012   Share   Quote   Permalink   Like   Dislike  

    these are the people who lost their jobs and have not been able to find new jobs despite trying. i think it's fine to give them more time if they are at least trying.

    it's those who have jobs but "strategically default", because their homes are no longer worth what they paid for, that should be immediately evicted from their homes. extreme force should be used when necessary.

    don't matter if these chronic squatters have 25 kids or are widows of deceased boomers boo hoo hoo. they are not above the law.

  4. Call it Crazy


    Follow
    Befriend
    706 threads
    8,616 comments

    4   12:33pm Mon 3 Dec 2012   Share   Quote   Permalink   Like   Dislike (2)  

    Mark D says

    these are the people who lost their jobs and have not been able to find new jobs despite trying. i think it's fine to give them more time if they are at least trying.

    it's those who have jobs but "strategically default", because their homes are no longer worth what they paid for, that should be immediately evicted from their homes. extreme force should be used when necessary.

    don't matter if these chronic squatters have 25 kids or are widows of deceased boomers boo hoo hoo. they are not above the law.

    This is what happens when the FHA basically gives "free" money. When all that is required is a 3.5% down payment and in many cases there are seller concessions to the buyer, these buyers have very little "skin in the game" invested in the house.

    Makes it real easy to "miss" a payment....

  5. APOCALYPSEFUCKisShostikovitch


    Follow
    Befriend (27)
    353 threads
    9,699 comments

    5   12:44pm Mon 3 Dec 2012   Share   Quote   Permalink   Like   Dislike  

    It ought to be a constitutional amendment:

    Cash or Fuck you!

  6. David Losh


    Follow
    Befriend (2)
    9 threads
    1,546 comments
    Seattle, WA
    David Losh's website

    6   1:13pm Mon 3 Dec 2012   Share   Quote   Permalink   Like   Dislike  

    For crap's sake, if you leave a property vacant you lose your insurance.

    These are insured loans, and every day the price on them is going up.

    So, what if we miss a year of interest payments?

    The properties will be foreclosed, they will get sold, and the prices paid will be higher than they were a year ago.

    It amazes me that people think the banking industry doesn't know exactly what it is doing.

  7. Call it Crazy


    Follow
    Befriend
    706 threads
    8,616 comments

    7   1:33pm Mon 3 Dec 2012   Share   Quote   Permalink   Like   Dislike (2)  

    David Losh says

    These are insured loans, and every day the price on them is going up.

    The properties will be foreclosed, they will get sold, and the prices paid will be higher than they were a year ago.

    Really think so??? Not here.....

  8. David Losh


    Follow
    Befriend (2)
    9 threads
    1,546 comments
    Seattle, WA
    David Losh's website

    8   4:41pm Mon 3 Dec 2012   Share   Quote   Permalink   Like   Dislike  

    Call it Crazy says

    Not here

    Well, look at your chart, it's what I've been talking about.

    How do you go from $190K to $300K, and then when you settle at $212K that's some how a loss.

    You have to take the spike out of the equation, and look at historical trends.

  9. Call it Crazy


    Follow
    Befriend
    706 threads
    8,616 comments

    9   7:02pm Mon 3 Dec 2012   Share   Quote   Permalink   Like   Dislike (2)  

    David Losh says

    How do you go from $190K to $300K, and then when you settle at $212K that's some how a loss.

    Because this is what you said above:

    David Losh says

    The properties will be foreclosed, they will get sold, and the prices paid will be higher than they were a year ago.

    So, my chart shows you that if you went back a year, prices were higher then and have come down, they are not higher NOW a year later like you stated... in fact, prices have dropped each of the last five years

    David Losh says

    You have to take the spike out of the equation, and look at historical trends.

    Make up your mind... are you talking a year ago or do you want to pull a trend line from 2003???

  10. David Losh


    Follow
    Befriend (2)
    9 threads
    1,546 comments
    Seattle, WA
    David Losh's website

    10   7:16pm Mon 3 Dec 2012   Share   Quote   Permalink   Like   Dislike  

    Call it Crazy says

    my chart shows you that if you went back a year, prices were higher then and have come down

    Yeah, look at your chart again, and for some reason I think I have seen it before.

    What you are saying is that in 2011 the house, a house, was worth $230K, but today it's only worth $212K.

    What's the property mix of your chart?

    It doesn't matter, you are focussed on a blip on a chart when the idea is that properties have come up in price this past year.

    This is a chart giving you a trend, and it goes back to 2003 for that purpose.

    Your chart shows that since 2003 property prices have gone from $190K to $212K.

  11. David Losh


    Follow
    Befriend (2)
    9 threads
    1,546 comments
    Seattle, WA
    David Losh's website

    11   7:23pm Mon 3 Dec 2012   Share   Quote   Permalink   Like   Dislike  

    Uh oh, I pulled up Ocean City, and it looks like property prices are up,
    http://www.zillow.com/local-info/NJ-Ocean-City-home-value/r_15845/

  12. Call it Crazy


    Follow
    Befriend
    706 threads
    8,616 comments

    12   7:38pm Mon 3 Dec 2012   Share   Quote   Permalink   Like   Dislike (2)  

    David Losh says

    What you are saying is that in 2011 the house, a house, was worth $230K, but today it's only worth $212K.

    That's what the trend of the chart says from last year..

    David Losh says

    What's the property mix of your chart?

    It's a Zillow chart of single family houses....

    David Losh says

    It doesn't matter, you are focussed on a blip on a chart when the idea is that properties have come up in price this past year.

    My "blip" takes into account the last 5 years, that's a hell of a "blip". Your comments above were about how house prices have risen since last year.

    David Losh says

    This is a chart giving you a trend, and it goes back to 2003 for that purpose.

    It doesn't matter how far it goes back, my original response to you was that house prices haven't risen like you stated here:

    David Losh says

    The properties will be foreclosed, they will get sold, and the prices paid will be higher than they were a year ago.

    So, once again, I have highlighted the Zillow chart so you can not only see what took place LAST year but even the few years before that.

  13. Call it Crazy


    Follow
    Befriend
    706 threads
    8,616 comments

    13   7:39pm Mon 3 Dec 2012   Share   Quote   Permalink   Like   Dislike (2)  

    David Losh says

    Uh oh, I pulled up Ocean City, and it looks like property prices are up,

    http://www.zillow.com/local-info/NJ-Ocean-City-home-value/r_15845/

    You need to read a little closer... my chart was from Ocean COUNTY not CITY... it's a little bigger area....

  14. David Losh


    Follow
    Befriend (2)
    9 threads
    1,546 comments
    Seattle, WA
    David Losh's website

    14   8:19am Tue 4 Dec 2012   Share   Quote   Permalink   Like   Dislike  

    Sorry http://www.zillow.com/local-info/NJ-Ocean-County-home-value/r_659/

    Shows prices at $231K which is down 2.2% Year over year, but higher than the price shown on your chart.

    You're argueing that banks some how don't know what they are doing when all of this government legislation is to prop up banks. It seems to be working.

  15. Call it Crazy


    Follow
    Befriend
    706 threads
    8,616 comments

    15   8:52am Tue 4 Dec 2012   Share   Quote   Permalink   Like   Dislike (2)  

    David Losh says

    You're argueing that banks some how don't know what they are doing when all of this government legislation is to prop up banks. It seems to be working.

    No, this all goes back to your blanket statement that "prices are rising". I just pointed out that it's not a correct statement.

    Real Estate is local, and on this side of the country, prices are still going down.... that's why you can't make general statements.

    Besides the county chart I posted above, here's the chart for NJ which shows, besides the normal peaks and valleys, the general trend is down the last few years... NJ is a lot larger geographical area then some of the cities that have posted gains recently (like Phoenix).

  16. Call it Crazy


    Follow
    Befriend
    706 threads
    8,616 comments

    16   8:59am Tue 4 Dec 2012   Share   Quote   Permalink   Like   Dislike (2)  

    robertoaribas says

    NJ has one of the largest backlogs of foreclosures anywhere, ridiculous taxes, etc. Any positive statements I make about housing value have no basis in NJ...

    That's the problem, most people could give a rats ass about your little piece of Phoenix as it relates to the rest of the country....

  17. David Losh


    Follow
    Befriend (2)
    9 threads
    1,546 comments
    Seattle, WA
    David Losh's website

    17   9:06am Tue 4 Dec 2012   Share   Quote   Permalink   Like   Dislike  

    Sorry, let's try this again with New Jersey:

    http://www.zillow.com/local-info/NJ-home-value/r_40/#metric=mt%3D34%26dt%3D1%26tp%3D6%26rt%3D14%26r%3D40%252C395164%252C394348%252C395193%26el%3D0

    Which again proves my point that in 2003, when you use the ten year historical chart, prices in New Jersey were $242K, today they are $257K.

    Banks are recouping what the market will bear, and the market right now is averaging better than it has historically.

    Actually according to your chart the price of property is higher which accounts for some of the peaks, and valleys.

  18. Call it Crazy


    Follow
    Befriend
    706 threads
    8,616 comments

    18   2:39pm Tue 4 Dec 2012   Share   Quote   Permalink   Like   Dislike (2)  

    David Losh says

    Actually according to your chart the price of property is higher which accounts for some of the peaks, and valleys.

    I really wonder about your ability to interpret a chart.....

  19. Call it Crazy


    Follow
    Befriend
    706 threads
    8,616 comments

    19   2:43pm Tue 4 Dec 2012   Share   Quote   Permalink   Like   Dislike (2)  

    David Losh says

    Actually according to your chart the price of property is higher which accounts for some of the peaks, and valleys.

    Here, I drew a trend line for you, since you seem to be having difficulty figuring out if prices are rising or falling....

  20. David Losh


    Follow
    Befriend (2)
    9 threads
    1,546 comments
    Seattle, WA
    David Losh's website

    20   3:07pm Tue 4 Dec 2012   Share   Quote   Permalink   Like   Dislike  

    Call it Crazy says

    I drew a trend line for you

    Five years from peak doesn't make a trend line. Checking month to month doesn't make a trend, but bottom line is banks are doing very well, and have recorded the strongest profits in six years, which corresponds with home prices rising the most in six years, in October.

Call it Crazy is moderator of this thread.

Email

Username

Watch comments by email
Home   Tips and Tricks   Questions or suggestions? Mail p@patrick.net   Thank you for your kind donations

Page took 131 milliseconds to create.