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Foreclosures Go Upscale

It's taken longer for ballooning loans to hit the wealthy, now facing the music

By Jim O'Neill, Newser User

Posted May 15, 2008 10:11 AM CDT

(Newser) – Luxury homes—once seemingly immune from the mortgage crisis—are starting to hit foreclosure lists across the nation, the Washington Post reports. And, real-estate agents predict, it’s just the beginning of a trend likely to grow as more buyers who bought beyond their means with adjustable-rate and interest-only mortgages are hit by the economic slowdown.

CNNMoney reports April foreclosure filings increased 65%, with bank seizures more than doubling from a year ago; in fact, one in 519 US households have received a foreclosure notice. Nationwide, filings against lux homes in the $1 million-plus range rose 50% from 2006 to 2007; actions against homes in the $500,000-$999,999 range rose 88%.

A foreclosure sign is seen atop a sale sign for a house in Stockton, Calif., Saturday, Dec. 1, 2007. (AP Photo/Marcio Jose Sanchez)

A for sale sign stands in front of a house in San Francisco. Sales of existing homes fell in March, the seventh drop in the past eight months. (AP Photo/Jeff Chiu)

A realtor's sign is seen on the lawn of a foreclosed home in Egg Harbor Township, N.J. (AP Photo/Mel Evans, file)

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Foreclosures Go Upscale

It's taken longer for ballooning loans to hit the wealthy, now facing the music

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housing market • mortgage • credit market • adjustable-rate mortgages • foreclosures

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More Newser Stories

$26B Mortgage Settlement a 'Modest' Help: Experts

Many struggling homeowners not covered in deal

Banks Ink $26B Deal to Help 2M Homeowners

49 states sign on to deal with nation's top 5 banks

Freddie Mac Bet Billions Against Homeowners

Has financial stake in limiting refinancing for struggling people

Ex-Banker: Yeah, Collapse Was Our Fault

So why haven't homeowners been bailed out?

Foreclosures Shoot Up 7%

RealtyTrac calls it the end of the robosigning 'rain delay'

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Foreclosures Go Upscale

It's taken longer for ballooning loans to hit the wealthy, now facing the music

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OTHER STORIES ON OUR RADAR

housing market • mortgage • credit market • adjustable-rate mortgages • foreclosures

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

$26B Mortgage Settlement a 'Modest' Help: Experts

Many struggling homeowners not covered in deal

Banks Ink $26B Deal to Help 2M Homeowners

49 states sign on to deal with nation's top 5 banks

Freddie Mac Bet Billions Against Homeowners

Has financial stake in limiting refinancing for struggling people

Ex-Banker: Yeah, Collapse Was Our Fault

So why haven't homeowners been bailed out?

Foreclosures Shoot Up 7%

RealtyTrac calls it the end of the robosigning 'rain delay'

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?