A Great Deal -- for Some
Over the past year or so, I have written quite a bit about the non-performing loans issue at the banks. One of the big issues has been that the banks are not pursuing recovery of losses being incurred as borrowers fail to pay. Most of these involve mortgagors who are in default on their mortgages.
So, the question as to why don't the banks foreclose naturally arises. The simplest answer to that question is that many of these mortgages have a guarantee that requires the government to pay the banks for the payments not being made by the borrowers. This applies to mortgage loans originated through the Federal Housing Administration (FHA) and Veterans Administration (VA), which are sold to investors as Government National Mortgage Association (GNMA) bonds....483 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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