Vultures Win Discounted FHA Mortgages in Writedown Program
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Four years after the housing bubble popped, 11 million homeowners owe more on their mortgages than their houses are worth.
On the theory that easing the debt burden for those underwater borrowers would boost consumer spending and lift the overall economy, the U.S. government is experimenting with a program to sell delinquent loans to investors at a discount that encourages them to lower the mortgage principal.