Friday, March 16, 2012

Rich Americans Walking Away from Million Dollar Homes

Continuation from "Foreclosures : The Rich Walks Away from Homes" 

Rich Americans Walking Away from Million Dollar Homes

But with housing market still years away in recovery, many are finding that foreclosure to be a worthwhile solution after all. Stuck with puffed up home mortgages following a long run up in home values, numerous high-end homeowners have decided on to engage in a strategic default. Although they can manage the regular monthly mortgage obligations, they continue to decide to walk away from their property for the reason that they will owe more on the home than it is worth.

In the more affordable housing (under one million) you might see much more homeowners defaulting because they are unable to pay for the payments and it's a decision between providing for their family and having to pay the home loan on a home that's under water.

In million dollar properties, you might be looking at folks who can manage it, but has made a business and financial decision to just walk away.

At the very least everyone can take your time packing up all of your belongings. It takes around 350 days for a foreclosure to be completed (depends on how busy your area is, some states takes longer, some shorter). You may get nearly a year of free housing out of the deal and if you're smart, have the banks write you a check for your moving out expense. some of my clients on average have checks written to them on average of $4,500 - $15,000 (depending on home value). Free housing for a year and up to $15k!!!WOOT!

Anyway Don't be expecting a few million dollar homes in foreclosures to bring down the neighborhood. A single or two foreclosure in an otherwise affluent area is not going to impact surrounding values.

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