Skip to comments.Luxury Homeowners in U.S. Use 'Short Sales' as Defaults Rise
Posted on 12/17/2009 4:42:45 PM PST by Lorianne
Homeowners with mortgages of more than $1 million are defaulting at almost twice the U.S. rate and some are turning to so-called short sales to unload properties as stock-market losses and pay cuts squeeze wealthy borrowers.
"The rich aren't as rich as they used to be," said Alex Rodriguez, a Miami real estate agent with JM Group USA Inc., whose listings include a $2.9 million property marketed as a short sale because the price is less than the mortgage, leaving the bank with a loss. "People have reached the point where they can't afford the carrying expenses of a $2 million home."
Payments on about 12 percent of mortgages exceeding $1 million were 90 days or more overdue in September, compared with 6.3 percent on loans less than $250,000 and 7.4 percent on all U.S. mortgages, according to data from First American CoreLogic Inc., a Santa Ana, California-based research firm. The rate for mortgages above $1 million was 4.7 percent a year earlier.
(Excerpt) Read more at businessweek.com ...
These are all Obama voters
I bought in a short sale at a 28% discount to the market top.
Probably could’ve done a little better by now.
spreadin’ the wealth around !
At this point I think I should have just let them foreclose.
You took the "high" road and got the shaft.............
Meaning tried to do what I thought was honorable and right....but got screwed doing it.
If you still owe it and pay it back, how can it be considered a "gift". I can see owing taxes if you don't pay it back though.
Most states conformed with the fed’s when they said they were not going to tax that anymore, but not California. *$&#%^@**
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