FHA Loans -
It looks like they are going to prolong the agony, printing more money and issuing bonds to bail out sub-prime borrowers using FHA.
In a non appreciating real estate market, the problem for all of the folks that have no savings is that from the instant they buy a house or get a new loan, they are locked into the house with no way to get out. If the house costs $200,000 and 1 year later is worth $180,000, figuring a 6% realtor commission, the owner has to cough up $32,000 to get out.
GAME OVER!
Do you guys remember the HUD auctions in the mid 80's.....they'll be back!
Kipp
