FHA first payment default rate are increasing dramatically as FHA becomes the only game in town for buyers with less than perfect credit and minimal downpayments. The same unscrupulous lenders that got is into the sub prime mess are now pushing FHA. /t compound the losses FHA has recently increased their lending limites and The House is debating a bill to bring back seller assisted down payments. What is the government going to do to stop the fraud and prevent another meltdown? Meanwhile the Stockton real estate market continues to languish. The number of Stockton foreclosures and Stockton short sales are increasing.