I posted about this before, but I am really interested to see whether FHA loans are truly recourse loans. If so, all this talk about being able to walk away from them will be moot, and I bet we’ll have another whole wave of “I didn’t know what I was signing” borrowers if the market continues to go south. I know the mortgage brokers I’ve asked about this don’t know that the buyers may be liable for the difference between what they owe on the loan and what the property sold for at foreclosure on federal loans such as FHA, VA, and SBA.
