FHA Mortgage Default Rate Soars, Here Comes Another Tidal Wave Of Foreclosures

The Business Insider ^ | 2-2-201- | Dina ElBoghdady and Dan Keating

[pburgh01]

I don’t think that class warfare rant is any more appropriate than what the dems launch. Those that made stupid decisions have already been booted to the curb, it is hardworking folks who now have lost their jobs being booted and I don’t think their circumstances should be considered lightly.

Oh yea so "The rich" are consuming all the entitlements, avoiding all the taxes, asking for all the stipends for health insurance, tax credits for everything. Those poor "working class", just innocent pawns....you're naive and you sound like a Democrat refusing to be honest about who put the country on its current trajectory. It's the sub 50k a year household incomes, them paying 30k into SS and taking out 60k, getting EIC, getting 7k back when they paid 2k in FICA. But then maybe I hit a nerve., when I was making 30k a year I used to vociferously defend the blue collar types also, until I woke up and realized why a 45 year old guy is making 38k a year with 0 in the bank is his own damn fault.

[IamConservative]

forced lenders to make loans to people who weren’t qualified

...and those forced to make those loans invented Credit Default Swaps and Mortgage Backed Securities to ensure they were enriched by the defaults. Seeing how profitable this could be for them, they loaned money to people who couldn't pay for a stick of gum.

[longtermmemmory]

you forgot lender created artificially high home prices.

Homes which should have been 50-150k were/ARE inflated to 300-600k.

the lenders are still making out. The recieve 1k per year a loan is modified and remains paid AND 1k for the start up.

few if any banks are doing principle reduction DESPITE HAVING BEEN COMPENSATED TO DO SO. (see bank of america, citibank, chase...)

[longtermmemmory]

when credit default swaps were in full swing, the house and borrower were NEVER THE PRODUCT. They were a side issue.

The wanted the promissory not in order to make money.

It was a ponzi scheme and they knew it.

hyper inflation is a concern because all the WH is populated by jimmy carter-esq ecconomic delusions.

[illiac]

The lenders did not artificially inflate home values - they do not have that ability. In our market, housing values raised dramatically because of a large number of investors coming in to the area and paying outlandish prices for homes (mostly all new homes). The home builder kept raising prices and the investors kept buying.

Since the values were up, appraisers had those sales to use as comparables in an appraisal (they often had no choice because they have to use what has sold in the appraisal report).

Thus, home values were artificially raised by investors who kept paying more and more for homes - we even had bidding wars in our area which kept raising prices.