Tuesday, March 13, 2012
Foreclosures : The Rich Walks Away from Homes
Foreclosures : The Rich Walks away from homes
Five years following the real estate bubble burst, Our country's wealthiest households are now sacrificing their properties to foreclosure at a more rapid rate than the remainder of the nation and the majority of are doing so willingly.
More than 36,000 properties valued at more than one million dollars were foreclosed on or at the very least served with a NOD or notice of default in 2011, according to some experts who track foreclosures. Although that's significantly less than two percent of all foreclosures across the country, it delivers a much larger share of foreclosure action than in previous years.
In all of the property foreclosure activity, the share of foreclosures on properties valued at more than one million dollars has climbed by 115% since 2007. The foreclosures of multi-million dollar properties or houses valued at more than $2 million reveals that it jumped by 273%. At the same time, the number of foreclosures on homes valued between half a million and one million dollars dropped by 21%.
Right until a short while ago, many property owners at the higher end of the real estate market were able to delay the foreclosure process. With other investments and choices, they had additional economic means to hold out from default.
On top of that, creditors are generally more agreeable to working with property owners that have other assets.
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