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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Perspective who wrote (120501)	5/4/2008 10:28:39 AM
From: GraceZ	Respond to of 306849

Wow - 37% of FHA loans seller funded, even after the mortgage implosion: Every FHA contract we ever received asked for cash back for closing or some other reason. This was true in 1996 when I sold the first of my rental properties as well as in 2007 when we sold the last. In every case we would have required more cash from them if they were renting the place, not buying it. This is why, historically, 2/3s of all mortgage defaults have been FHA. The insurance premium is quite high on that FHA insurance, plus they allow people to finance some of the closing costs, most start out with a larger mortgage than the sale price on the day they settle even with the cash backs.