Thanks, so circling back, what does it mean for the US government to back/backstop these mortgages? Especially given your statements above that there is still risk of default for the lender.
For FHA it appears all costs resulting from foreclosure are reimbursed except perhaps these, by forclosure expenses I think they mean legal fees, not the mortgage itself:
"The FHA reimburses only about two thirds of foreclosure expenses, interest is not reimbursed for the first two missed payments, and interest is reimbursed at the HUD debenture rate for subsequent missed payments."
