Tuesday, October 25, 2011

Vulture Investors Picking Up FHA Loans.

Bloomberg News story is HERE.

From the story: 
The FHA so far has acquired and sold about 2,500 loans on properties across the U.S. under the program, with a total unpaid principal balance of $446.8 million.

The agency pays an average of $28.78 every day to maintain and market each of the tens of thousands of repossessed properties that it has received in exchange for insurance payouts to loan servicers. 
Using this data Daily average holding cost work out to $10,505 per year or $875 per month. (If average insured amount known, could work out the % reduction in value that occurs annually).

Originally created and posted on the Oregon Housing Blog.

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