Thursday, February 4, 2010

New wave of foreclosures coming?- Top Stocks - MSN Money

New wave of foreclosures coming?- Top Stocks - MSN Money: "For the past year, the Federal Housing Administration has backed home loans that most big lenders wouldn't touch.

The FHA has helped people get loans who otherwise would be in a pickle as credit markets have dried up. But at the same time, the FHA has insured loans for people who couldn't afford them and has artificially propped up the housing market.

Now the FHA's woes continue to mount. About 9% of FHA borrowers have missed at least three payments (up from 6.5% a year ago), and experts say that means a new wave of home foreclosures is coming, according to The Washington Post."

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