The FHA is experiencing "a large number of zero payment defaults" in which borrowers fail to make even one payment on their new government-insured mortgages, a Department of Housing and Urban Development official said at the Mortgage Bankers Association's annual National Fraud Issues Conference in Las Vegas. The trend, which Lisa Gore, the assistant special agent in charge of the criminal investigation division in HUD's inspector general's office, called "a huge red flag" that some type of fraud has been committed, is similar to the one experienced in the 1999-2001 housing market turndown... [The Washington Post's] analysis of FHA data found that more than 9,200 loans insured by the agency in the past two years have gone delinquent with either one payment or no payments being made. The analysis found that the pace of what the Post called "instant defaults" has tripled in the last year, and more than two dozen loans are defaulting in this manner every week, the newspaper reported...


catherine at 22:13 2009-03-19 said:
the solution is they are just going to have to do what Texas did a couple decades ago


people are just getting their cash AND RUNNING

no one else is paying their bills, why should these homeowners

the defaults are going to continue for a long time

even purchases, get a home and live there for free for a year or more with some states not allowing foreclosures

the clowns are in charge now.....................spending our money............. Permalink

taps65 at 02:33 2009-03-20 said:
HUD-OIG can't say that this is a "NEW" trend of fraud. Since mid 2006 Littlerock, an unincorporated area in the Antelope Valley has been reported to them 100x over. For them to be taking about it in 2009 means that they all have to be FIRED. Anyone who reads this and loves the Untied States, please forward this post to HUD-OIG and the FBI. Permalink

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