Jacksonville Foreclosure Attorney Notes More Wealthy People Choosing Strategic Default as Foreclosure Strategy
A recent New York Times article focused on the rising number of wealthy people choosing strategic default – walking away – as a foreclosure strategy, treating their home mortgage more like a poor investment in need of divestment.
According to an analysis done for the Times by CoreLogic, a real estate analytics firm, more than one in seven homeowners who have loans that are in excess of $1 million are seriously delinquent on their mortgages. This compares with one in 12 mortgage holders whose loans are worth less than $1 million.
The Times concludes that the rich are choosing to dump their properties like any other investment that has gone sour.
One example was Los Altos, California, where five properties with unpaid mortgages of more than $1 million are up for foreclosure auction. The usual rate used to be around one property every month.
The Times also noted that the delinquency rate on investment homes is now 23 percent on those with mortgages in excess of a million dollars. The rate is 10 percent for investment homes that have mortgage debt under one million dollars.
No matter what amount of mortgage debt you have, if you are a Florida homeowner facing foreclosure, you should speak to a Florida foreclosure lawyer as soon as possible.
Greg Gilbert
Keith Maynard
