Posted by Hugh Nations Signing Agents of Austin on 7/9/10 9:57am
Msg #344311

The rich homeowner is, indeed...

...different from the rest of us. The wealthy are walking away from their underwater mortgages at a far faster rate than The Great Unwashed. The delinquency rate on investment homes of over $1 million is now 23 percent, vs about 10 percent for cheaper homes. From the NYTimes:

http://www.nytimes.com/2010/07/09/business/economy/09rich.html?th&emc=th

Reply by MW/VA on 7/9/10 1:45pm
Msg #344355

Interesting article, Hugh. Cheryl (livescan101) had posted a while back that she was working a lot of foreclosures of very high-end homes.

Reply by Les_CO on 7/9/10 3:20pm
Msg #344369

Maybe because the “rich’ homeowner has options? Maybe another, or several places to live? And they are smart enough NOT to pay $1.5 million for a $ I million home. Let the bank/government/taxpayers take the loss. They can buy it back later, at a reasonable price if they are not tired of it.
Contrary to what you see on TV, all “rich’ people ain’t stupid.

Reply by CF on 7/9/10 5:05pm
Msg #344387

Cash flow needs to be considered too. They have enough to monthly income and cash on hand to not worry about it. For the rich a "blemish" on their credit is no big deal. For an average Joe...their credit would be ruined.


Cash is King these days!!! Also, agree with Les_CO...the rich are not going to take the hit....let someone else take it.