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Luxury Homeowners in U.S. Use 'Short Sales' as Defaults Rise
Business Week ^
| 17 December 2009
| Kathleen M. Howley and Dan Levy
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 ...
TOPICS: Business/Economy
KEYWORDS:
1
posted on
12/17/2009 4:42:49 PM PST
by
Lorianne
To: Lorianne
I wonder how many of them voted for Obama...
2
posted on
12/17/2009 4:48:45 PM PST
by
darkwing104
(Lets get dangerous)
To: Lorianne
These are all Obama voters
To: Lorianne
I bought in a short sale at a 28% discount to the market top.
Probably could’ve done a little better by now.
4
posted on
12/17/2009 4:52:30 PM PST
by
Uncle Miltie
(If you need a < / sarc> tag, you're not paying attention.)
To: Lorianne
"The rich aren't as rich as they used to be,"
Well, I think that was the idea.
5
posted on
12/17/2009 5:00:02 PM PST
by
dk88
(Keep your laws off my body)
To: dk88
spreadin’ the wealth around !
To: Lorianne
Ug. I was forced to “short sale” on a half million dollar home in San Diego to move for work. The 60,000 loss the mortgage company took was counted as a “gift” to me that the state of CA wanted to TAX!!! I still owe money on a house I no longer own. Talk about adding insult to injury.
At this point I think I should have just let them foreclose.
7
posted on
12/17/2009 5:39:39 PM PST
by
allmendream
(Wealth is EARNED not distributed, so how could it be RE-distributed?)
To: allmendream
Sorry to hear my FRiend......
You took the "high" road and got the shaft.............
8
posted on
12/17/2009 5:41:36 PM PST
by
Osage Orange
(Obama's a self-made man who worships his own creator...............)
To: allmendream
Forgot to say....I've been there.
Meaning tried to do what I thought was honorable and right....but got screwed doing it.
9
posted on
12/17/2009 5:42:53 PM PST
by
Osage Orange
(Obama's a self-made man who worships his own creator...............)
To: allmendream
The 60,000 loss the mortgage company took was counted as a gift to me that the state of CA wanted to TAX!!! I still owe money on a house I no longer own. Talk about adding insult to injury. 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.
10
posted on
12/17/2009 6:12:11 PM PST
by
Graybeard58
("Get lost, Mitt. You're the Eddie Haskell of the Republican party." (Finny))
To: Graybeard58
Because the Mortgage company “forgave” that debt by accepting less than I owed, that counts as a “gift”.
Most states conformed with the fed’s when they said they were not going to tax that anymore, but not California. *$&#%^@**
11
posted on
12/17/2009 6:27:48 PM PST
by
allmendream
(Wealth is EARNED not distributed, so how could it be RE-distributed?)
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