Defaults on Government Backed Mortgages
Defaults on government backed mortgages, or FHA, have started to rise! Lately, FHA mortgages have been what just about everyone has been using to purchase their homes. Add to the mix the tax incentive, and people are out there taking full advantage of the government money.
Well, the news, today, isn't good. The government has been experiencing more than usual defaults on loans, with a few lenders at the root of the problem. To overcome this problem FHA is considering tightening their loan limits AND raising their requirements for credit scores.
This will impact the small recovery we've experienced; it won't help the market at all! And it's because of a few greedy lenders. In light of what we've recently gone thru, it's just plain irresponsible!
What do you think? What are you seeing in your market?
Marianne Snygg, GRI, ABR, ASP
ERA Herman Group Real Estate
Colorado Springs and Monument Real Estate