Posted on 07/08/2010 10:25:14 PM PDT by Tempest
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.
By contrast, homeowners with less lavish housing are much more likely to keep writing checks to their lender. About one in 12 mortgages below the million-dollar mark is delinquent.
Though it is hard to prove, the CoreLogic data suggest that many of the well-to-do are purposely dumping their financially draining properties, just as they would any sour investment.
(Excerpt) Read more at nytimes.com ...
Well there’s hustler hustling, then there is hustle that goes with bustle and being busy.
I got my first job from a homeless man washing rats in the Bowery. Paid a wooden nickle and hour, and I was happy to have it.
Woahhh the rich never overextend themselves and abandon investments when they go sour....
Such a conclusion would be too logical and we don’t want logic now do we.
You mean they were raising money by selling counterfeit Tupperware?!?
And crosses made from moon crystals to show their piety.
Huh. Who woulda guessed there was a demand on the street for clean rats?
Those were different times.
Personal responsibility is only for people that can’t afford it...
And yet your condition still hasn’t changed. My but life is so unfair...
refer to post #28
Now there is a finding for you:
1. People who borrow a lot of money for their house are more likely to have trouble paying it back.
2. People who borrow more modest amounts for their house are more likely to be able to pay the loan.
And this finding is suppose to be interesting? BTW, who says that someone with a bigger loan is rich?
Good article...
The worse problem here is that this survey didn’t classify examples by income, but by size of mortgage. Easy money and ready job availability once meant it was possible to buy much more house than one could afford by older, more sensible standards. This could mean over-leveraged rather than filthy rich. As long as house prices were rising and money was easy, it was also easy to reason that, in a personal financial crisis, you’d just sell the house, make more economical arrangements for the future, and that would be that.
avoid living beyond your means and pray. Alot
are you referring to this article?
Good advice for everyone.
Lies, damn lies, and statistics. Most studies that try to assign cause/effect relationships correct the data for other factors. Because million dollar mortgages are a VERY small fraction of the mortgage marketplace (million dollar MORTGAGE, not house), the statistics are very susceptible to other strong correlations in the data. Where are the million dollar mortgages? Primarily in California. And the underemployment rate in CA is, what, 25%??? What percentage of mortgages in CA are upside down??? I would like to see the default rate when corrected for unemployment, market conditions, even PITI as a percentage of current income. If the ‘wealthy’ truly are abandoning their financial responsibilities, the fallout is what, the wealthy pay more taxes? If that is the case, seems like self preservation to me. I always thought the taxpayer money going for mortgage assistance was a slap to the face of those that followed the rules and bought within their means. If the wealthy are really opting for strategic defaults, I can;t say that I blame them... the message has been “you really need to pay your share so that people upside in their ill-advised mortgages can keep their homes.” When the policy rewards irresponsibility, what incentive is there to remain responsible???
So you assume that there aren’t more stringent qualifying standards when you get into the higher priced jumbo loan style homes?
Really?
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