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