Foreclosures on 1 Million Dollar Homes on the Rise | Lower ...

Million follar forclosures on the rise as homeowners walk away

It?s been 5 years after the housing bubble burst and still America?s wealthiest families are experiencing its aftermath. In fact, its gotten worse ? their homes are being foreclosed at a faster rate than the rest of the country. And take note, a lot of them are doing this on their own volition.

In 2011, more than 36,000 homes were foreclosed or had notices of default. The value of one of these homes? $1 million or more according to RealtyTrac (which tracks foreclosures). Sure this is less than 2% of the nationwide foreclosures but the percentage is definitely higher than in prior years.

The share of foreclosed properties valued at $1 million or more went up by 115% from its 2007 share. The share of foreclosed properties valued at more than $2 million has risen by 273%, while the share of foreclosures on those properties valued between $500,000 and $1 million declined by 21%.

Before these foreclosures, these homeowners were able to hold off foreclosures as they have more resources to do so. But their strategy shifted when they saw it will take years for the housing market to recover. Even if they can afford to pay the monthly mortgage payments, they are now voluntarily walking away from their homes because the properties are valued less than what they are actually worth. In other words, it doesn?t make sense anymore to pay the mortgages since their properties are now worth less than what they actually owe.

But the process is definitely not a speedy one. On the average, it takes 348 days or almost a year to complete a foreclosure. And these foreclosures are not expected to bring down the whole neighborhood. According to Stuart Vener, a national real estate and mortgage expert with Wilshire Holding Group, a Florida-based company, this will give buyers an opportunity to buy impressive houses at bargain prices, which can boost overall sales and drive turnover. So if you?re one of those looking to buy a property, this is definitely good news for you.

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Source: http://lower-manhattan-real-estate.com/2012/02/foreclosures-on-1-million-dollar-homes-on-the-rise/

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