From a slightly different perspective the FHA has a default rate of about 9-10% right now. If the FHA has 1 trillion in guaranteed loans, then you’re probably looking at 100 billion in potential losses. The odd thing about FHA defaults is we should see those in default foreclosed through HUD but there’s nothing coming out of HUD. Is the government just going to let people squat without paying and artificially reduce inventory? You bet. Good luck seeing any foreclosure inventory in the future. The government/FHA controls whether or not it will happen directly.[/quote]
Just interesting anecdotal stuff, but we’re creditors in a BK proceeding (fighting the BK), so I’ve been spending quite a bit of time listening to a lot of cases. You’d be surprised (or not) at how many times the BK trustee asks about the status of the debtors’ mortgages, and how many people haven’t paid in **years** (IIRC, the longest was five years) and have yet to be foreclosed on. In some cases, they are claiming to not have received default notices![/quote]
Yes, CAR, it’s mighty interesting in there . . . ESP the motion hgs. The debtor individuals and couples who come into court are often wearing paint-splattered clothes and torn up work boots or look like they stepped straight out of a Goodwill bin. Then you leave after them and follow them to the parking meters where they enter their late-model Bimmer and take off. You know . . . the one that they have petitioned to “reaffirm.” :=0
