John Comiskey has exposed yet another glaring example of FHA’s “partial claim” loophole in action. A California property owner with a $913,000 FHA-backed loan is collecting rent while skipping mortgage payments—knowing the FHA will step in to cover the bill. The pattern is clear. The borrower made one payment before stopping altogether. After 10 months, the FHA covered nearly $70,000 in missed payments. A brief attempt to get current failed when the check bounced.
More skipped payments followed, and once again, the FHA bailed them out with another $70,000. Now, the borrower is three months behind again, and the cycle is expected to repeat. By the time this plays out, they could rack up between $210,000 and $270,000 in interest-free money—all while tenants continue paying rent.
Comiskey, who has been tracking these cases, highlighted how borrowers are using FHA’s safety net as a personal slush fund. The “partial claim” process, meant to keep struggling homeowners in their properties, is now a tool for landlords who don’t even need to pay their mortgages. Even better, if interest rates drop, they can take advantage of a “free refi” and reset the game.
The FHA was supposed to help keep people in their homes—not fund real estate investors who refuse to pay their own bills. With cases like this adding up, it’s only a matter of time before taxpayers are left holding the bag.
Source:
https://x.com/Johncomiskey77/status/1902401574451786122