FHA Insured Mortgages, a Disaster in the Making?

``Currently, there are 555,000 FHA-insured homes which are delinquent 90 days or more. This figure has been rising steadily for three years... The cure rate for seriously delinquent mortgages has plunged to roughly 1%. This means that 99% of these delinquent mortgages are headed for default and then either foreclosure or short sale... Considering the rate at which FHA mortgages are now becoming delinquent, there will be more than 700,000 seriously delinquent FHA mortgages within a year. There is no doubt that the FHA Commissioner is determined to prop up the housing market regardless of the fallout.''