Government (FHA) Foreclosures Jump 73 Percent in April

FHA Foreclosures Jump 73 Percent in April

Foreclosure starts on loans backed by the Federal Housing Administration rose 73 percent between March and April, driven by defaults on mortgages issued in 2008 and 2009, according to a report today by mortgage data provider Lender Processing Services.

The increase in FHA foreclosure actions came as overall foreclosure starts dropped by 2.6 percent, Jacksonville, Florida-based LPS said. Nationally, there were 181,584 foreclosure starts in April, down from 186,446 in March. For FHA loans, there were 63,126 foreclosure starts in April, up from 36,311 in March.

LPS officials attributed the spike in FHA foreclosures to the expanded role the government mortgage insurer played following the collapse of private housing finance in 2008. FHA loan originations tripled that year.

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4 Responses to “Government (FHA) Foreclosures Jump 73 Percent in April”
  1. talktotennessee says:

    Everyone is making money from the housing crash, attorneys in civil suits, municipalities supporting suits but no one is championing the rights of homeowners. Despite baling out banks, taxpayer money used to shore up banks, the players prosper, but homeowners have no part in recovery. Homes in the foreclosure process are being sold with nothing recovered by the homeowner as banks get smart and short sell without going through a legal foreclosure process. The homeowner may be paid a few bucks to move. This is happening all over Memphis now. Homeowners must list the house and continue to keep it up during the short sale process. Investment groups come in for the buy or kill. The average discount is reported as 42% in this area. The bank would never discount principal 40% so the homeowner could keep the home. They don’t have to do that and no one is even asking them to.
    Sooooo, what we have is the economy continuing to tank, home values continue to fall. Realty Trac says distressed sales account for 17.4 % of all sales in Memphis’ area with an average sales price of $71,064, discounted 42%. One in every 639 properties forecloses. Source: Commercial Appeal 6-1-2012. Data provided by Realty Trac.
    Those of you living in high income/property cost areas may think this is a golden opportunity. Investment companies opting in from all over the country (world) investing in Memhis real estate but what they fail to consider is WHO is going to buy those houses or rent them in an area so depressed that its residents are losing homes and jobs despite low cost of buying a home. Investors/new limited corporation groups buying local Real Estate at $30 to $40K per home, renovating them and placing back on market for $70K or renting. When these houses fail to sell or rent, what then? We are in for a second housing dip because NO ONE, neither political party or candidate is suggesting a real cure for a spreading disease!

  2. brian tracy says:

    HMMM Are they avoiding the toxic 2007 and earlier non-secured loans or is this just that there was a backlog of defaults in the later years to catch up on…

  3. incognito123 says:

    I was wondering the same thing keepon, but I will not leave my home unless an entity could come forward that I really owe something to them, which I don’t see happening anytime soon if ever

  4. keepon says:

    How come HERB BLECHER still has a job and Middle America has none? How come we still quote “fraud monger” Lender Processing Services doc-wrights of fraudclosure packages in service to the TBTF banks, servicing companies, and foreclosures mills NATIONwide home of the stable of robosigners. Haven’t they done enough in service to community already? Why they could even recreate an entire foreclosure package if you were coming up short for your court appearance.

    I’m not a stupid person but I just can’t grasp why they get quoted and I get treated like shit and have my home taken away on their homemade docs. Did Linda Green sign in Iceland too? Why is it certified “criminal” in Iceland but not in Breuer-ville & Dimon-town USA? I’m having some very real problems with getting why they haven’t been hanged in town square yet.

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