Liberté, Egalité, Foreclosuré ?
Well, it looks like the the foreclosure virus is becoming more egalitarian every day; its even moving into tonier neighborhoods:
RealtyTrac is forecasting that Houses with $5 million+ mortgages will likely be the next class of loans to go belly up. While the overall numbers are small, they expect to see a sharp rise in foreclosures this year. In all of 2009, there were 1,312 houses with $5M+ mortgages scheduled for foreclosure auction. The spike is apparent this year — in the month of February alone, there were 352 homes nationwide in this category.
Here’s the Journal:
“Mortgage defaults began to surge in late 2006, mostly among borrowers with subprime mortgages, those for people with weak credit records or high ratios of debt to income.
Over the next few years defaults spread rapidly to better-heeled borrowers, especially those who got loans without documenting their income. At the end of 2009, nearly eight million households, or 15% of those with mortgages, were behind on mortgage payments or in the foreclosure process. . .
Big borrowers are more likely to default than ordinary people, according to data from First American CoreLogic. Its loan database, reflecting more than 80% of the overall home-loan market, includes 1,700 loans with balances of $4 million or more. About 14.8% of those loans were 90 days or more overdue at the end of January, compared with 8.7% for all home loans tracked by First American.”
It turns out that the wealthy are not any better at forecasting their own future economic circumstances than the unwashed masses were . . .
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Source:
Foreclosures Hit Rich and Famous
CRAIG KARMIN And JAMES R. HAGERTY
WSJ, APRIL 9, 2010
http://online.wsj.com/article/SB10001424052702304198004575172303998670976.html
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April 8th, 2010 at 9:47 pm
Barry, do you think the banks will actually — “seriously” — start unloading inventory this year? BofA says so. I can hardly believe that they’ll stop extending and pretending. Is it a way to jawbone the public/government into more bailouts? Or, has the Fed given them so much money by now that the banks can take a few more writedowns without declaring bankruptcy or changing management?
April 8th, 2010 at 9:57 pm
and another take-
maybe the “heavy hitters” out there are less adherent to duty and obligation to repay the bank loan-
but folks are starting to learn- and it is becoming more acceptable by the day for the gullible masses to walk away from their mortgages
April 8th, 2010 at 10:27 pm
There’s only one solution: tax cuts for the rich.
April 8th, 2010 at 10:47 pm
@VennData: YES, If we’d just throw more money at these rich bastards… we’d no longer be poor, right?
April 8th, 2010 at 10:54 pm
wow on the right hand side of this page is financial expert BEN STEIN!
April 9th, 2010 at 12:50 am
How can this be when the stock market is going up everyday and job growth was positive for March? [snicker]
April 9th, 2010 at 6:39 am
The bigger the McMansion that can be taxed as in the REAL’s (King’s) Estate, the higher the incremental utility rate, the more and more costly to maintain, the more underwater it becomes… until the better to raze the living conundrum and revert to nature or apartmentilate the beast.
April 9th, 2010 at 7:06 am
This is a little off topic (maybe pre-mature), but since tax day is coming soon, i thought it interesting:
In addition to huge corporations that get away with paying no income tax, check this out
http://finance.yahoo.com/news/Nearly-half-of-US-households-apf-1105567323.html?x=0&.v=1
April 9th, 2010 at 9:59 am
You scared me with your title. I thought foreclosures were coming to France !
April 9th, 2010 at 10:49 am
‘While the overall numbers are small’………….Come on Kids let’s push this to 11,000 on the close!
April 9th, 2010 at 11:54 am
Damn, Nicholas Cage can save the world every other movie but can’t sell his f-ing house.
That’s sad.
Separate topic, am I the only one getting BofA offers with 0% for a year?