“Please forgive the stupid question. Help me understand. Isn’t FHA going to be Federally insured? I.e., government insured, i.e. if someone defaults/forecloses on loan, the government bails them out, i.e. the taxpayers? Or as mentioned, will it be a HUD home. Cool. HUD homes in 4S Ranch. I like that.”
The Housing and Urban Development department repossesses homes, mainly through its FHA program. The FHA insures lenders who make loans(see my Post above for how this is supposed to work). When a borrower defaults, the FHA makes good the loan to the lender, and takes the property back.
Watch out for a new plan for HUD to put the homes in an subsidized affordable rental housing scheme. (crackpot conspiracy theory but don’t let Washington catch wind of the idea)
I haven’t seen anyone post it but I think they might be in part targeting houses with 90 days or longer delinquencies, at least the gse’s anyway. I tried to find the reference to this topic but couldn’t right away so I quit.
Chrysler paid the government a loan guarantee fee, and repaid the guaranteed loans early. In the end there was no direct cost to taxpayers.
IIRC the government also made hundreds of millions by exercising stock warrants given as part of the bailout package. The cost was passed on to Chrysler stockholders in the form of dilution.
Chrysler had to renegotiate its existing debt. Creditors wrote off substantial sums in order to avoid even greater losses in bankruptcy.
Sure, Chrysler screwed up, and by the cold logic of capitalism shareholders and management deserved to feel some pain. They did. But the bailout kept thousands of workers and dozens of plants in productive use.
A house produces nothing. It is valuable for its use as shelter, but a 3000sf house serves the same purpose whether it costs $1 million or $400,000.
Chrysler paid the government a loan guarantee fee, and repaid the guaranteed loans early. In the end there was no direct cost to taxpayers.
IIRC the government also made hundreds of millions by exercising stock warrants given as part of the bailout package. The cost was passed on to Chrysler stockholders in the form of dilution.
Chrysler had to renegotiate its existing debt. Creditors wrote off substantial sums in order to avoid even greater losses in bankruptcy.
Sure, Chrysler screwed up, and by the cold logic of capitalism shareholders and management deserved to feel some pain. They did. But the bailout kept thousands of workers and dozens of plants in productive use.
A house produces nothing. It is valuable for its use as shelter, but a 3000sf house serves the same purpose whether it costs $1 million or $400,000.
Chrysler paid the government a loan guarantee fee, and repaid the guaranteed loans early. In the end there was no direct cost to taxpayers.
IIRC the government also made hundreds of millions by exercising stock warrants given as part of the bailout package. The cost was passed on to Chrysler stockholders in the form of dilution.
Chrysler had to renegotiate its existing debt. Creditors wrote off substantial sums in order to avoid even greater losses in bankruptcy.
Sure, Chrysler screwed up, and by the cold logic of capitalism shareholders and management deserved to feel some pain. They did. But the bailout kept thousands of workers and dozens of plants in productive use.
A house produces nothing. It is valuable for its use as shelter, but a 3000sf house serves the same purpose whether it costs $1 million or $400,000.
Chrysler paid the government a loan guarantee fee, and repaid the guaranteed loans early. In the end there was no direct cost to taxpayers.
IIRC the government also made hundreds of millions by exercising stock warrants given as part of the bailout package. The cost was passed on to Chrysler stockholders in the form of dilution.
Chrysler had to renegotiate its existing debt. Creditors wrote off substantial sums in order to avoid even greater losses in bankruptcy.
Sure, Chrysler screwed up, and by the cold logic of capitalism shareholders and management deserved to feel some pain. They did. But the bailout kept thousands of workers and dozens of plants in productive use.
A house produces nothing. It is valuable for its use as shelter, but a 3000sf house serves the same purpose whether it costs $1 million or $400,000.
