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

By Ironman (88/91 = 96% civil)   2012 Nov 15, 4:00am   ↑ like (1)   ↓ dislike (2)   1,988 views   14 comments   watch (0)   share   quote  

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/

#housing

Comments 1-14 of 14     Last »

1   pazuzu   2012 Nov 15, 4:41am  ↑ like (1)   ↓ dislike   quote   top   bottom   home   share  

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

2   Strategic Renter   2012 Nov 15, 7:19am  ↑ like   ↓ dislike   quote   top   bottom   home   share  

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

3   BobMSN   2012 Nov 15, 11:26pm  ↑ like   ↓ dislike   quote   top   bottom   home   share  

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”.

4   uomo_senza_nome   2012 Nov 15, 11:33pm  ↑ like   ↓ dislike   quote   top   bottom   home   share  

5   Ironman (88/91 = 96% civil)   2012 Nov 15, 11:39pm  ↑ like   ↓ dislike (3)   quote   top   bottom   home   share  

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???"

6   Tenpoundbass (44/44 = 100% civil)   2012 Nov 16, 12:13am  ↑ like   ↓ dislike (3)   quote   top   bottom   home   share  

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.

7   Tenpoundbass (44/44 = 100% civil)   2012 Nov 16, 12:13am  ↑ like   ↓ dislike (3)   quote   top   bottom   home   share  

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

8   Ironman (88/91 = 96% civil)   2012 Nov 16, 12:35am  ↑ like   ↓ dislike (3)   quote   top   bottom   home   share  

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".....

9   Ironman (88/91 = 96% civil)   2012 Nov 16, 12:36am  ↑ like   ↓ dislike (3)   quote   top   bottom   home   share  

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....

10   PockyClipsNow (8/8 = 100% civil)   2012 Nov 16, 12:46am  ↑ like (1)   ↓ dislike   quote   top   bottom   home   share  

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

11   Tenpoundbass (44/44 = 100% civil)   2012 Nov 16, 12:58am  ↑ like   ↓ dislike (2)   quote   top   bottom   home   share  

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.

12   RentingForHalfTheCost   2012 Nov 16, 1:13am  ↑ like   ↓ dislike   quote   top   bottom   home   share  

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.

13   Tenpoundbass (44/44 = 100% civil)   2012 Nov 16, 3:16am  ↑ like   ↓ dislike (2)   quote   top   bottom   home   share  

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.

14   Ironman (88/91 = 96% civil)   2012 Nov 16, 3:32am  ↑ like   ↓ dislike (3)   quote   top   bottom   home   share  

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!!!!

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