Thursday, July 08, 2010

Foreclosures: Movin' on Up!

by Bill McBride on 7/08/2010 11:54:00 PM

From David Streitfeld at the NY Times: Biggest Defaulters on Mortgages Are the Rich

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.
...
The CoreLogic data measures serious delinquencies, which means the borrower has missed at least three payments in a row.
  • Were these borrowers really "rich"? Or did they just buy more home than they could really afford?

  • The "movin' on up" theme for distressed properties is something we've been discussing for some time. We're all subprime now!

  • Obviously more distressed sales will put downward pressure on prices in these areas.