While lots of criticism from some TV commentators has been heaped on lower-income homeowners who lost their homes to foreclosure, it’s now the rich who are defaulting more frequently on their mortgage loans.
The New York Times reports today that more than one in seven homeowners with loans in excess of a million dollars are seriously delinquent, according to data compiled for The New York Times by the real estate analytics firm CoreLogic.
In contrast, one in 12 mortgages below the million-dollar mark is delinquent.
The NYT reports that it appears many of the well-to-do are purposely dumping their financially draining properties, including second homes and investment properties, as they would any sour investment.
Low- and moderate-income homeowners have generally resisted foreclosure as long as possible, continuing to struggle to pay high mortgage costs supporting debt that is often far in excess of their current home’s value.
“The rich are different: they are more ruthless,” said Sam Khater, CoreLogic’s senior economist.