Homeownership: Information on Foreclosed FHA-Insured Loans and HUD-Owned Properties in Six Cities

Pursuant to a congressional request, GAO looked at early foreclosures in Chicago, Illinois; Washington, D.C.; Atlanta, Georgia; Dallas, Texas; Baltimore, Maryland; and San Bernadino, California focusing on: (1) comparing early foreclosure rates on Federal Housing Administration (FHA)-insured single-family loans made in low-, medium-, and high-income areas nationwide and in the six cities; (2) comparing across income areas the proportion of loans made in the six cities by FHA-approved mortgage lenders with and without early foreclosures; (3) factors that influence early foreclosure rates; and (4) comparing the length of time the Department of Housing and Urban Development (HUD)-owned single-family properties remained unsold in low-, medium-, and high-income areas in the six cities. GAO did not attempt to evaluate the soundness of mortgage underwriting decisions or the impact of vacant homes on neighborhood conditions because of the methodological difficulties that a broad examination of these issues would present.